Homemarket Newscommodities News

Gold rate today: Yellow metal plunges over 3%; finds support at Rs 50,000 per 10 grams level

Gold rate today: Yellow metal plunges over 3%; finds support at Rs 50,000 per 10 grams level

Gold rate today: Yellow metal plunges over 3%; finds support at Rs 50,000 per 10 grams level
Profile image

By Ankit Gohel  Aug 12, 2020 11:13 AM IST (Updated)

Gold prices in India extended losses on Wednesday, falling over 3 percent, on the Multi Commodity Exchange (MCX) as hopes of coronavirus vaccine led a sharp profit booking amid strength in the US dollar index, analysts said.

Gold prices in India extended losses on Wednesday, falling over 3 percent, on the Multi Commodity Exchange (MCX) as hopes of coronavirus vaccine led a sharp profit booking amid strength in the US dollar index, analysts said.

Recommended Articles

View All

At 11 am, gold futures for October delivery fell 2.71 percent or by Rs 1,409 to Rs 50,520 per 10 grams as against the previous close of Rs 51,929 and opening price of Rs 51,650 on the MCX. Silver futures traded 6.97 percent or by Rs 4,668 lower at Rs 62,266 per kg. The prices opened at Rs 64,257 as compared to the previous close of Rs 66,934 per kg.
On Tuesday, gold prices plummeted over 5 percent or by more than Rs 3,000 while Silver plunged 12 percent or by Rs 9,000 on the MCX.
“Bullion prices witnessed profit booking after the reports of the development of coronavirus vaccine by Russia. Strong US dollar also pressurized gold and silver prices,” said Amit Sajeja, AVP Research - Commodities & Currencies at Motilal Oswal.
In the international market, gold fell below the $1,900 per ounce level on Wednesday as a resurgent dollar prompted investors to reassess their positions after a record-breaking price rally, Reuters reported.
Spot gold declined as much as 2 percent to a near three-week low of $1,872.19, resuming its free-fall after a brief hiatus in early trade. It was down 1.1 percent to $1,889.59, extending losses after a 6 percent plunge on Tuesday. US gold futures slid 2.4 percent to $1,900.
Silver too joined the slide, falling 2.8 percent to $24.11 per ounce after a 15 percent slump in the previous session.
However, gold prices are likely to find support at $1,865 level and may see a small rise towards $1,905-1,920 levels in the near-term, Sajeja added.
“On MCX, support for gold is placed at Rs 49,900-50,000 levels. Holding above this, a relief rally towards Rs 51,200-51,600 levels can be seen,” Sajeja added.
Meanwhile, the Indian rupee was trading flat amid selling seen in equity markets.
Ajay Kedia, Director, Kedia Commodity Comtrade believes that technically now Gold price continues its decline strongly to lose its recent gains and if settles below 51100, it will be facing more negative pressure that might push the price to achieve more decline. But we notice that the price trades at the main bullish channel’s support line, which might push trades to start recovery attempts, he said.
“If gold breaks support level of Rs 49,780, it will extend the bearish wave to target Rs 48,550 and below the same Rs 48,100 level on the near term basis. Meanwhile, if it breaches the resistance of Rs 51,100, the price may build a new bullish wave that targets testing Rs 52,250 followed by Rs 53,500 areas initially,” Kedia said.
 
(Disclaimer:
The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Most Read

Market Movers

View All
Top GainersTop Losers
CurrencyCommodities
CompanyPriceChng%Chng