After the US presidential election, gold prices continued to decline. On Thursday, the December future contracts for gold on MCX opened 0.37 percent lower at ₹76,369 per 10 grams, while the December future contracts for silver were trading 0.24 percent lower at ₹90,601 per kg.
Silver prices have dropped by ₹4,050 per kilogram and gold prices by ₹2,100 per 10 grams in the past two days following the US elections.
The price of 24-carat gold is ₹76,570 per 10 grams, 22-carat gold is ₹74,720 per 10 grams, 20-carat gold is ₹68,130 per 10 grams, and 18-carat gold is ₹62,201 per 10 grams, according to the India Bullion and Jewellers Association Ltd. (IBJA).
Since Donald Trump won the presidency, the strong US dollar has caused gold and most other commodities to trade in the negative, according to Pranav Mer, vice president of EBG-Commodity & Currency Research at JM Financial Services.
The focus now turns on the US Fed’s policy outcome and other economic data. “We expect more correction only if the given supports are breached and sustained, failing to which prices may again resume their upward journey. Resistance is seen at 78,000 on MCX and $2,755 in an international spot,” he added.
Gold prices were extremely volatile, ranging from ₹78,500 to ₹77,500 per 10 grams, as the outcome of the US election supported the dollar index, which rose to 105. “This dollar strength pushed gold to lows of ₹ 77,500 per 10 grams and $2,700 in dollar terms,” said Jateen Trivedi from LKP Securities. According to experts, there appears to be a short-term bearish sentiment in place, with a critical resistance level at $2,740 and support at $2,680.
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