Indian gold prices dropped sharply on Monday. On the Multi-Commodity Exchange (MCX), the August gold contract fell 0.03% in 1235 hours to 47,909 rupees per 10 grams.
“Gold’s fair value seems to be decided near the 1800 level, because in the absence of new fundamental news, a hike in the dollar and the imminent threat of delta variance, gold is struggling to break through the $1835 level. The strong rebound in global stock markets has also impacted. Sandeep Matta, founder of TRADEIT Investment Advisor, said that the U.S. dollar will be the main driving force for gold prices in the next few days, and any further rise in the U.S. dollar will have a negative impact on safe-haven assets.
“According to our opinion, the MCX gold price also dipped sharply on Friday and closed near the 48,000 level. So far, our outlook for gold is neutral until it breaks and remains above the 48,500 level. Forward investors expect more adjustments to make new entries, while day traders need to proactively capture small gains from both parties.
The key level of the August gold contract: 48,139 rupees. Buy the upper area-48,150 rupees, with a target price of 48,25048,408 rupees. Lower sales area: Rs 48,150 with a target price of Rs 47,92547,837,” he added.