Gold Price Today, 22 July 2021: Gold falls on weak global cues; check support, resistance levels

Analysts say the investors are assessing the economic impact of the fast-spreading Delta variant of the coronavirus,

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were trading lower in India on Thursday, following the global rates as the dollar remained strong. On Multi Commodity Exchange, gold August futures were trading Rs 128 or 0.27 per cent down at Rs 47,445 per 10 gram, as against the previous close of Rs 47,573. Silver September futures fell Rs 98 or 0.15 per cent to Rs 67,039 per kg. In the previous session, silver September futures ended at Rs 67,137 per kg. Globally, investors looked past economic threats from rising cases of the Delta coronavirus variant and opted for riskier assets instead, which dragged the yellow metal. Spot gold was down 0.1% at $1,801.82 per ounce, after hitting a more than one-week low of $1,793.59 in the previous session. US gold futures eased 0.1% at $1,801.90 per ounce.

Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities

Gold is right now swimming against strong currents, which are curtailing any move to the upside.Strong US dollar and rising yields are those strong currents which is why gold is struggling to stay above $1800 per ounce. Cryptocurrencies also showed significant gains lately. After Monday’s strong downside crash, the equity market has also recovered so money is also flowing into the equity market. With strong U.S. equities markets and the potential for cryptocurrencies to have found tentative support, it makes it more difficult for gold prices to rise. The future direction of gold prices could certainly be influenced by the upcoming FOMC meeting, which begins on July 27. Market participants are also waiting for any announcement by the European Central Bank today at 6 pm. While there are plenty of long-term fundamental factors that support gold prices the most significant headwind for gold remains the U.S. dollar. Gold has also breached its 45500 support and so is looking vulnerable to more downside. Next support comes in range of 47300-46800. Any long position can only be considered above 48000 in MCX.

Rahul Gupta, Head of Research-Currency, Emkay Global Financial Services

The investors are assessing the economic impact of the fast-spreading Delta variant of the coronavirus, and a positive tone around the equity markets acted as a headwind for the safe-haven gold. Only a global surge in coronavirus cases will support the gold prices. MCX Gold prices have opened with a negative bias today. The counter had closed at 47573 with a cut of around 0.65% yesterday. Intraday strength above 47600 will trigger a bounce towards 47700-47750 areas. Any major upside reversal will be seen only above 47750. The bias will stay negative until then and prices will extend the losses towards 47340/47225 levels. For the short term, 46900 is the crucial support, above which every dip is a buying opportunity for a target of 48000-48500.

Abhishek Chauhan, Head Commodities and Currency, Swastika Investmart

MCX gold opened around 47400. Dollar which measures the basket of major currencies, slipped from higher levels yesterday which may support the Gold and Silver prices at current levels. However, rebound in US 10 year bond yield may keep the prices of Gold and Silver under pressure. In MCX, Gold has support at 47200 if it is unable to break this level then a bounce towards 48000 is expected. However, upside may remain limited and prices may trade in a sideways trend ahead of ECB monetary policy scheduled in the evening session today. Silver has support at 65000 and resistance at 67100.

Sandeep Matta, Founder, TRADEIT Investment Advisor

Gold is struggling for follow up buying near to its 100 DEMA level and becoming a sell on rise market. It’s becoming a bear case scenario as gold prices are making lower highs every day and seem we are again moving towards the critical support range of $1765-$1750 unless a fresh fundamental spart to jumpstart a price uptrend.

Gold of MCX is also trading with negative sentiments and seems to have failed to breakout. With rupee depreciating the outlook for the yellow metal is negative and we are continuously advising investors to stay away from long trades from the past few days. We further anticipate that relative volatility in the gold prices will increase in the short run.

Key level for GOLD AUG Contract – 47608
Sell Zone Below – 47600 for the target of 47465-47358
Buy Zone Above – 47625 for the target of 4735-47858

(The views in this story are expressed by the respective experts of research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

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