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Gold Price-Yellow Metal Falls

Commodity prices fell, with most commodities in the non-agricultural sector seeing a sell-off due to the dollar gain. Bullion prices had their lowest day on Friday, continuing the weekly fall following the release of U.S. payroll statistics. Crude oil prices declined for the first time in nine months. Primary metals meanwhile, lagged behind weak global indications due to concerns about demand growth. On Monday, India’s Gold MCX October futures fell more than 1% in morning trade, matching a drop in international spot prices. That plummeted to a more than four-month low as robust U.S. job data fueled fears that the Federal Reserve might hike interest rates sooner than planned.

Spot gold dropped more than 2.3 per cent to $1,722.06 per ounce. Earlier in the day, prices fell to $1,684.37, the lowest since March 31, according to Reuters. The data increased the dollar and benchmark 10-year Treasury yields in the United States, undermining gold’s appeal as an inflation hedge. On the Multi-Commodity Exchange (MCX), October gold contracts traded 1.4% lower at Rs 45,981 a kilo. Silver futures for September were trading 1.9 per cent lower at Rs 63,730 per kilogram.

Domestic market

Domestic markets ended on a sour tone as well. Gold and silver prices fell on Friday, which boosted the dollar index and benchmark 10-year bond yields. In international markets on Friday, gold and silver prices settled on a lower note. Gold December futures finished at $1,763.50 per troy ounce.

The gold price fell to its lowest level since April 2020 due to stronger-than-expected non-farm payroll statistics from the United States. Robust U.S. job statistics also signal the Federal Reserve to set out its strategy to reduce bond purchases by early 2022, said Manoj Kumar Jain.

They predict that both precious metals will continue poor in Monday’s session and exhibit more weakness amid significant U.S. equities and dollar strength gains. Gold may test $1710 per troy ounce once again. He stated that gold has a support level of $1734-1710 per troy ounce and a resistance level of $1778-1792 per troy ounce.

Gold has a support level of 46300-45950 and a resistance level of 46920-47200 on the MCX, while silver has a support level of 64100-62800 and a resistance level of 66200-67100.

Technical indicators

Following a 0.3 per cent drop yesterday, COMEX gold is trading modestly lower near $1804/oz. Firmness in the U.S. dollar, fueled by hawkish statements from Fed members, is weighing on gold.

Investor interest sees in ETF outflows. However, heightened geopolitical tensions, rising virus instances, and mixed economic data from critical economies support the price.

Gold has retreated after failing to hold above the 1836 milestone, although it is still trading above $1800/oz. Gold, like equities, may continue volatile, but if U.S. non-farm payrolls data disappoints. International spot and futures gold and silver prices fell on Friday after a solid U.S. jobs data raised anticipation that the Federal Reserve will start decreasing its economic stimulus sooner than initially expected. Domestic gold and silver prices fell on Friday, mirroring global values.

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