Tag: profit booking

  • Gold Price Today: MCX Gold Falls 0.57% to Rs 1,42,413 as Profit Booking and Stronger Dollar Weigh

    Gold Price Today: MCX Gold Falls 0.57% to Rs 1,42,413 as Profit Booking and Stronger Dollar Weigh

    Gold prices on the Multi Commodity Exchange (MCX) declined on July 31, as profit booking and a stronger US dollar weighed on the precious metal. August gold futures fell 0.57% to Rs 1,42,413 per 10 grams. September silver futures also declined by 0.53% to Rs 2,18,805.

    In the international market, spot gold dropped 0.6% to $4,076.53 per ounce, while US gold futures for August delivery lost 0.4% to $4,074.20. Spot silver fell 0.8% to $58.48 per ounce, platinum slid 1.7% to $1,631.77, and palladium declined 0.8% to $1,294.

    Crude oil prices also edged lower, with Brent crude futures falling 0.98% to $88.16 per barrel and US West Texas Intermediate (WTI) declining 1.47% to $82.36 per barrel.

    According to the CME FedWatch Tool, traders now see a 63% probability of a rate hike by the US Federal Reserve in September. This expectation, combined with a stronger dollar and escalating tensions in the Middle East, has injected volatility into the precious metals market.

    Despite the daily decline, gold has found support around the $4,000 level, attracting buyers on dips. “Gold is showing a mild negative bias today amid profit-taking and a moderate bounce in the US dollar, following the metal’s gains yesterday,” said Tim Waterer, chief market analyst at KCM Trade. He added that gold has had a better run this month, with key support near $4,000.

    Key Levels to Watch

    Internationally, gold has support at $4,064 and $4,020, with resistance at $4,120 and $4,155 per troy ounce. Silver has support at $58.20 and $57.70, with resistance at $59.80 and $60.60 per troy ounce.

    On MCX, gold has support at Rs 1,42,400 and Rs 1,41,750, with resistance at Rs 1,44,000 and Rs 1,45,100. Silver has support at Rs 2,17,700 and Rs 2,16,000, with resistance at Rs 2,22,200 and Rs 2,24,500.

    Domestic and US Gold Prices

    In India, 24K gold rose by Rs 27 to Rs 1,44,600 per 10 grams, while 22K gold advanced by Rs 25 to Rs 1,32,550. Prices in Mumbai and Kolkata were at Rs 1,44,600, Delhi at Rs 1,44,750, and Chennai at Rs 1,44,600.

    US gold prices found support from bargain buying near the $4,000 level, as investors weighed Middle East developments and their impact on the US rate outlook.

  • MCX Gold Slips 0.48% to ₹1,44,984 as Profit Booking Emerges; Brent Crude Jumps 2.30% to $96.23

    MCX Gold Slips 0.48% to ₹1,44,984 as Profit Booking Emerges; Brent Crude Jumps 2.30% to $96.23

    Gold prices on the Multi Commodity Exchange (MCX) experienced a decline on July 23, driven by profit booking after a 2% surge in the previous session. The retreat comes amid ongoing geopolitical tensions and rising crude oil prices.

    August gold futures fell 0.48% to ₹1,44,984 per 10 grams, while September silver futures dropped 0.40% to ₹2,26,090 per kilogram. Meanwhile, Brent crude futures climbed 2.30% to $96.23 per barrel, and US West Texas Intermediate (WTI) advanced 1.81% to $88.40 per barrel.

    Domestic Gold Prices

    In the Indian market, 24K gold rose by ₹77 to ₹1,47,280 per 10 grams, while 22K gold increased by ₹70 to ₹1,35,000. City-wise prices showed Mumbai and Kolkata at ₹1,47,280, Delhi at ₹1,47,420, and Chennai at ₹1,46,520.

    US Gold Prices

    In the United States, gold prices held steady on Thursday, pulling back from two-week highs reached in the previous session. The escalating Middle East conflict, particularly the US-Iran tensions, continued to push oil prices higher. Spot gold was little changed at $4,132.01 per ounce, while US gold futures for August delivery fell 0.4% to $4,134.60.

    Spot silver gained 0.3% to $59.90 per ounce, platinum rose 0.7% to $1,656.24, and palladium advanced 0.8% to $1,301.25.

    Key Levels and Analyst Insights

    “Oil continues to be up, adding to pressures of inflation and expectations of Fed interest rate hikes, capping a positive undertone in gold as the dollar weakens,” said Jigar Trivedi, a senior research analyst at IndusInd Securities.

    According to the CME FedWatch Tool, traders now see a 77% chance of a September rate hike by the US Federal Reserve. Key support levels for MCX gold are at ₹1,44,400 and ₹1,43,350, while resistance stands at ₹1,46,800 and ₹1,48,000. For silver, support is at ₹2,24,400 and ₹2,22,000, with resistance at ₹2,29,100 and ₹2,31,000.

    “We suggest long-term investors must hold their long positions in gold and silver, but traders can book profits in every market rise in gold around ₹1,47,000 and ₹1,48,000 range and in silver around ₹2,31,000 and ₹2,33,000 range,” advised Manoj Kumar Jain of Prithvifinmart Commodity Research.

    Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should consult with a qualified financial advisor before making investment decisions.

  • Key Factors Behind the Recent Decline in Gold Prices

    Key Factors Behind the Recent Decline in Gold Prices

    The price of gold has recently experienced a notable decline, driven by a combination of macroeconomic and market-specific factors. Understanding these forces can help investors navigate the shifting landscape of precious metals.

    Stronger US Dollar

    A stronger dollar makes gold more expensive for international buyers, reducing global demand and putting downward pressure on prices. When the dollar strengthens, gold becomes less affordable in other currencies, leading to decreased purchases and lower valuations.

    Rising Bond Yields

    Higher government bond yields increase returns from fixed-income investments, encouraging investors to shift capital away from non-yielding assets like gold. As yields rise, the opportunity cost of holding gold increases, making bonds more attractive.

    Interest Rate Expectations

    Expectations of prolonged higher interest rates reduce gold’s appeal because investors seek assets that generate stronger income and returns elsewhere. Central banks maintaining a hawkish stance further diminish gold’s attractiveness compared to yield-bearing instruments.

    Profit Booking

    After significant price rallies, investors often sell gold to lock in profits, triggering temporary price corrections. This profit-taking behavior is common even when long-term fundamentals remain bullish, creating short-term volatility.

    Reduced Safe-Haven Demand

    Improved global economic confidence lowers demand for traditional safe-haven assets like gold. During periods of reduced market uncertainty, investors feel less need to hold defensive positions, reducing purchases of precious metals.

    Central Bank Policies

    Hawkish monetary policies influence investor expectations, strengthening currencies and reducing demand for gold as a defensive investment. Central banks raising interest rates or signaling tighter policy can further dampen gold’s appeal.

    Inflation Moderation

    Slowing inflation reduces the urgency for inflation-hedging assets. As price pressures ease, some investors gradually decrease gold holdings in diversified portfolios, preferring other asset classes.

    Equity Market Strength

    Strong stock market performance encourages investors to allocate capital toward higher-growth opportunities rather than defensive precious metals. When equities rally, gold often loses its relative attractiveness.

    Global Economic Signals

    Positive employment, manufacturing, and economic growth data improve investor confidence, reducing the need for gold as a safe haven during favorable market conditions. Strong economic indicators can lead to sustained selling pressure on gold.

    These factors collectively contribute to the current decline in gold prices, highlighting the complex interplay between monetary policy, investor sentiment, and global economic trends.

  • India Stock Market Wobbles: Sensex Sinks 372 Points, Nifty Drops Below 24,000 as Profit Booking Deepens

    India Stock Market Wobbles: Sensex Sinks 372 Points, Nifty Drops Below 24,000 as Profit Booking Deepens

    Indian equity markets ended Monday’s session sharply lower, reversing early gains as broad-based profit booking and IT stock weakness dragged benchmarks. The Sensex plunged 372 points to close at 76,728.37, while the Nifty slipped below the crucial 24,000 mark, settling at 23,978. Persistent Systems led the losers, tumbling nearly 8% after announcing its $1.14 billion acquisition of Germany’s Nagarro.

    Market Overview

    Markets opened on a positive note after a long weekend, but selling pressure accelerated through the morning. The Sensex turned negative within the first hour, losing over 200 points, and continued to slide as the session progressed. The Nifty tested the 24,050 level early on but failed to hold support, closing below 24,000 for the first time in several sessions.

    Key Movers

    • Persistent Systems crashed nearly 8% after announcing its proposed $1.14 billion acquisition of Nagarro. Analysts noted long-term strategic benefits but flagged near-term integration costs.
    • HDFC Bank recovered above Rs. 800 after months of selling pressure, providing some support.
    • Ajanta Pharma hit a fresh all-time high above Rs. 3,400, extending its bullish momentum.
    • Anubhav Plast surged over 623%, leading the gainers list amid extreme volatility.

    Broader Market

    The Nifty Smallcap index fell for a second consecutive session, reflecting continued selling in mid- and small-cap stocks. Volatility was elevated, with stocks like Uhm Vacation, IITL Projects, and Euphoria Infotech witnessing sharp swings.

    Key Triggers This Week

    Investors are closely monitoring:

    • First-quarter earnings season
    • Progress of the monsoon
    • Crude oil prices and US-Iran tensions
    • Foreign institutional investor (FII) flows
    • Reserve Bank of India measures
    • Global economic data

    Analyst Views

    Shrikant Chouhan of Kotak Securities highlighted key support at 24,000 for Nifty and 76,800 for Sensex. A break below could trigger further weakness, while sustained trade above may push indices toward 24,200 and 77,500. LKP Securities’ Rupak De recommended a buy-on-dips strategy, with short-term trend remaining positive above 23,800.

    Other Market Developments

    • GIFT Nifty traded marginally higher at 24,098.50, indicating a flat-to-positive start for Tuesday.
    • The Indian rupee opened nearly flat at 94.35 per US dollar.
    • Gold prices declined, while crude oil edged higher amid geopolitical uncertainty.
    • Delhi Cabinet approved a new Electric Vehicle Policy, effective July 1.
    • Adani Energy Solutions board will meet on July 1 to consider fundraising.
    • Power Grid revoked a ban on KEC International, allowing fresh bids.

    The session ended with broad-based weakness, and market participants now await fresh domestic and global cues for direction.