Gold prices down around 9% from peak, experts suggest support at this level
International gold prices recovered modestly on Monday, snapping a six-day losing streak, but they are still around 9 per cent lower from their recent peaks. Domestic gold prices too followed suit.
ANI
Nov 18, 2024 15:53 IST
New Delhi [India], November 18 (ANI): International gold prices recovered modestly on Monday, snapping a six-day losing streak, but they are still around 9 per cent lower from their recent peaks. Domestic gold prices too followed suit.
At the time of filing this report, international gold prices were trading at USD 2,597 per ounce, down from their peak of USD 2,790 ounce. The latest low was around USD 2,537 per ounce.
Here in India, on the Multi Commodity Exchange of India (MCX), the gold was trading at Rs 74,657 per 10 gm, up 1 per cent intraday, but down from its peak of around Rs 80,000 per 10 gm.
Mumbai-based Kedia Advisory said despite the modest intraday gains today, expectations of less aggressive US Fed rate cuts and elevated US bond yields limited the upside.
"The recent pullback stalled near key technical levels, with USD 2,536 acting as pivotal support," said Kedia Advisory.
Kedia Advisory added that geopolitical tensions, including heightened conflicts in Ukraine and Gaza, boosted haven flows, but robust US economic data and Fed hawkishness weighed on bullish sentiment. Strong follow-through buying above USD 2,600 is necessary to signal a bullish reversal.
Gold is up more than 24 per cent this year, with gains supported by the US Fed's easing cycle, central bank purchases and heightened geopolitical and economic risks that have driven haven demand.
"Gold traded near a two-month low, on course for its worst week since June 2021 as traders wind back expectations for a Federal Reserve interest-rate cut next month. Bullion has fallen six days in a row and is set for a weekly loss of more than 4 per cent," brokerage firm Nirmal Bang said in a note.
Colin Shah, MD, Kama Jewelry believes that the latest correction will relieve buyers in India.
"We are amid a wedding season, and gold buying is key to wedding celebrations. Gold prices are falling largely due to the rising inflation in the US that has dimmed hopes of a rate cut by the US Fed," added Shah.
"Gold prices are expected to trade at current levels in the short to medium term. Prices will eventually recover to their recent highs as geopolitical tensions fade, and interest rates are softened by the US Fed and the RBI in the first half of 2025," Shah of Kama Jewelry added. (ANI)
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