Gold prices in India declined on Friday, extending losses for the fourth consecutive trading session, amid sustained selling pressure.
MCX gold rate for October futures contracts traded lower by Rs 896, or 0.56%, at Rs 1,58,100 per 10 grams. The yellow metal prices declined as much as 0.68%, or by Rs 1,085, to an intraday low of Rs 1,57,911 level.
In four sessions, gold prices have slumped by Rs 5,318, or 3.25%, on MCX.
In the international market, gold prices traded lower as market participants awaited US Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium.
Spot gold price fell 0.5% to $4,576.30 per ounce, after hitting a more than three-month high earlier this week following. US gold futures eased 0.8% to $4,629.00.
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Jigar Trivedi, Senior Research Analyst at IndusInd Securities said that the fall in gold prices was largely on account of market rumours that government may slash import duty from current 15% to 6%.
“However, no official confirmation has come yet. The speculative shorts have pushed gold lower on the MCX. The outlook for gold prices remains weak ahead of the Fed Chair Warsh's speech,” said Trivedi.
Gold Price Outlook
Trivedi said that the support for MCX gold price lies at Rs 1,58,000 and Rs 1,57,800
Ponmudi R, CEO, Enrich Money said that the broader structure for MCX gold remains intact, with price trading above the 20/50/100/200-day EMA, keeping the medium-term trend positive.
“Immediate resistance is at Rs 1,59,500 – Rs 1,60,000, followed by Rs 1,62,000 - Rs 1,62,500. Immediate support is at Rs 1,57,600 – Rs 1,57,000, followed by Rs 1,55,500 – Rs 1,55,000. RSI at 60.93 remains in positive territory but has declined sharply from the overbought region, signalling a cooling of momentum,” he said.
He believes the bias remains cautiously negative in the near term, with prices needing to hold the Rs 1,57,000 support zone to maintain the broader bullish structure, while a sustained move above Rs 1,60,000 would improve upside momentum.
“A decisive break below Rs 1,57,000 could extend the correction toward Rs 1,55,500 – Rs 1,55,000,” said Ponmudi R.
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