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Home Gold News Gold Prices Drop as Profit Booking Continues

Gold Prices Drop as Profit Booking Continues

by anna

Gold prices continued their downward trend this week, with a significant drop of Rs 2,000 per 10 grams. On Wednesday, Gold December futures contracts opened at Rs 75,209 per 10 grams, up by Rs 308 or 0.41%. Meanwhile, Silver December futures rose by nearly 1%, reaching Rs 90,195 per kilogram, an increase of Rs 868.

Despite the positive start to Wednesday’s session, both metals have faced profit-taking throughout the week. Gold prices have experienced a reduction of Rs 2,000 per 10 grams, while silver has fallen by approximately Rs 1,100 per kilogram.

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On Tuesday, gold and silver finished the day on contrasting notes in both domestic and international markets. Gold December futures closed at Rs 74,901 per 10 grams, marking a loss of 0.60%. Silver December futures, on the other hand, closed at Rs 89,327 per kilogram, up by 0.16%.

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The ongoing struggles for gold and silver are largely attributed to a rally in the dollar index, cryptocurrencies, and the US stock markets, following Donald Trump’s victory in the US Presidential elections. The dollar index surged to a 6.5-month high, while Bitcoin hit $90,000 per coin, driven by Trump’s crypto-friendly policies. This shift has placed downward pressure on both gold and silver prices.At the time of writing, the US Dollar Index (DXY) was hovering near the 105.97 mark, up by 0.05% on the day.

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In addition, rising US 10-year bond yields, which have reached four-month highs, are further diminishing the appeal of gold and silver as safe-haven assets. Gold and silver markets are highly oversold, and a rebound is expected following today’s inflation data.Volatility to persist in gold and silver prices this week, driven by upcoming US inflation data and uncertainty in global financial markets.

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At the Multi Commodity Exchange (MCX), gold has support levels at Rs 74,640-74,400 and resistance at Rs 75,220-75,500. For silver, support is seen at Rs 88,500-88,000, with resistance at Rs 89,950-90,600.Buying silver on dips around Rs 89,000, with a stop loss set at Rs 88,200 and a target of Rs 90,500.

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