MCX gold futures for June 4 delivery last traded at Rs 47,079 per 10 grams, down Rs 240 or 0.51 percent from their previous close, down to Rs 47,025 earlier in the day.
The August 5 delivery contract fell Rs 222, or 0.47%, to Rs 47,420.
Silver followed suit with a contract on the stock exchange dated July 5, quoted at Rs 104, or 0.15% lower, at Rs 70,796 per kilogram.
Globally, spot gold fell 0.63 percent to $ 1,781.63 an ounce and silver 0.70 percent to $ 26.70 an ounce.
Federal Reserve Chairman Jerome Powell said Monday that the US economy is improving, but still not dead, but has made gold less attractive.
Back home, the third day of losses on Dalal Street stopped the fall in precious metals prices. The sell-off in financial companies, especially private lenders, drove the underlying indices down nearly 1% each.
As a rule, precious metals have a feedback loop with stocks, with any gain in stocks increasing the risk appetite of investors, taking them away from safe havens such as gold, and vice versa.
Meanwhile, according to Mumbai-based industry body IBJA, spot gold and 99.9% pure silver were worth Rs 46,968 per 10 grams and Rs 70,120 per kilogram excluding GST.
#Gold and #Silver Opening #Bets on 04/05/2021 # IBJA https://t.co/2jiRJuHKKU
– IBJA (@ IBJA1919) 1620110106000
The dollar index, which measures the dollar against its six major foreign peers, was last counted near a daily high of 91.37, up 0.49% on the day.
What analysts say
“The dollar index is volatile within a certain range, and stocks do not seem to be in the mood for a correction, which reduces the shine of metals. However, metals continue to perform well and may continue to rise, ”Navnit Damani said. Vice President, Commodity Research, Motilal Oswal Financial Services.
He expects gold on COMEX to fluctuate in a wider range from $ 1,773 to $ 1,820 per ounce in the near future, and up to Rs 47,000-47,700 per 10 grams on MCX. Damani sees MCX gold hitting the Rs 50,500 mark towards Diwali.
“MCX gold finds support at Rs 47,100–46,880 and resistance at Rs 47,550–47,700, while silver finds support at Rs 70,400–69,800 and Rs 71,400–71,900, respectively,” said Manoj Kumar Jain. Director of Commodity Research, Prithvi Finmart.
He suggests buying gold around Rs 47,100 with a stop loss of Rs 46,880 with a stop loss of Rs 46,880 and silver around Rs 70 400 with a target of Rs 71,600 with a stop loss of Rs 69,800.
Market participants will be closely watching US service and employment activity data due this week for clues.