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    Gold Price Today: Yellow metal drops below Rs 45,900 mark. Should you take positions?

    Gold Price Today: Yellow metal drops below Rs 45,900 mark. Should you take positions?

    Gold Price Today: Yellow metal drops below Rs 45,900 mark. Should you take positions?
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    By CNBCTV18.com  IST (Updated)

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    Gold and silver prices fell on Tuesday as investors awaited a speech from Federal Reserve Chairman Jerome Powell due later this week for more clarity on interest rates in the US and the world.

    Domestic gold and silver prices moved lower on Tuesday tracking weakness in global benchmarks amid a strengthening dollar, making bullion more expensive for holders of other currencies. Losses on Dalal Street, however, boosted the precious metal's allure as a safety bet. Investors globally awaited a speech from Federal Reserve Chairman Jerome Powell due later this week for more clues on interest rates in the world's largest economy going forward.
    At 12:34 pm, MCX gold futures for October delivery were at Rs 45,884 per 10 grams, down by Rs 185 or 0.4 percent compared with the contract's previous close of Rs 46,069. Silver December futures were down by Rs 703 or 1.2 percent at Rs  59,931 per kilogram, as against their previous close of Rs 60,634 per kilogram.
    Globally, gold and silver prices fell amid gains in the dollar as well as US Treasury yields. Spot gold was last seen trading half a percent lower at $1,741.5 per ounce, and US gold futures down 0.6 percent at $1,742 per ounce. Silver was down 1.1 percent at $22.4 per ounce.
    The rupee hit a one-month low against the US dollar, rising above the 74-mark against the greenback for the first time since August 27. The dollar index - which measures the greenback against six other currencies - was up 0.2 percent at 93.6, making bullion dearer for those holding other currencies.
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    Gold is often considered a hedge against higher inflation, but a Fed rate hike would increase the opportunity cost of holding gold, which pays no interest.
    On Dalal Street, benchmark indices Sensex and Nifty50 tanked nearly one percent each in a swift retreat from record highs registered last week.
    MCX gold has support at Rs 45,900-45,660 and resistance at Rs 46,300-46,550, said Manoj Kumar Jain, Director-Head of Commodity Research at Prithvi Finmart.
    Support for the white metal exists at Rs 60,100-59,800, and resistance is expected at Rs 61,100-61,600.
    Time to take positions?
    Jain suggests buying gold on dips to around Rs 45,900 for a target of Rs 46,300 with a stop loss at Rs 45,720.
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