- Gold prices on MCX fell for the third consecutive session, dropping 1.8% intraday
- MCX gold October futures opened at Rs 1,60,499 and hit an intraday low of Rs 1,56,692
- Gold prices declined 4% in three sessions after hitting a three-month high on August 24
Gold prices in India gave up early gains to trade lower on the Multi Commodity Exchange (MCX) on Thursday, extending losses for the third consecutive session.
MCX gold rate for October futures contracts opened at Rs 1,60,499 per 10 grams as against its previous close of Rs 1,59,663 level. However, the yellow metal failed to hold gains and price declined by 1.8%, or by Rs 2,971, to touch an intraday low of Rs 1,56,692 level.
At 11:20 AM, gold price was trading lower by Rs 1,348, or 0.84%, at Rs 1,58,315 per 10 grams level. MCX silver price was down by Rs 669, or 0.28%, at Rs 2,38,969 per kg.
In three sessions, MCX gold price has fallen by 4%, or by Rs 6,537 per 10 grams.
The recent fall in gold rate came after a sharp rally which led the yellow metal to nearly a three-month high of Rs 1,64,773 level on August 24.
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Meanwhile, in the international market, gold prices remained near a three-month high as the debasement trade continued amid concerns over US debt risks and a weaker dollar. Gold prices climbed toward $4,650, recovering most of the previous session losses as investors assessed Federal Reserve policy prospects after hotter-than-expected inflation data.
US PCE prices increased more than expected in July and remained well above the Fed target, supporting expectations for tighter monetary policy. Investors now await Fed Chair Kevin Warsh's speech at Jackson Hole Symposium on Friday.
Technical Outlook
The broader structure for MCX gold price remains intact, with price trading well above its 20, 50, 100 and 200-day EMAs.
According to Ponmudi R, CEO, Enrich Money, MCX gold rate may face immediate resistance at Rs 1,62,000 – Rs 1,62,500 zone, followed by Rs 1,64,500 – Rs 1,65,000. Immediate support is at the Rs 1,60,000 – Rs 1,59,500 zone, followed by Rs 1,58,200 – Rs 1,57,600.
“RSI at 65.93 remains bullish, although it has eased from the overbought region, suggesting some moderation in momentum after the recent sharp rally. Bias remains cautiously positive, with prices needing to reclaim and sustain above Rs 1,62,000 to strengthen the upside momentum, while a decisive break below the near-term support zone could resume the corrective move toward Rs 1,58,200 – Rs 1,57,600,” he said.
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