Gold price today jumped to Rs 52,860 from Rs 52,850, while silver price was trending at Rs 63,900 per kg, according to the MCX MONEY website.
Gold jewellery price varies across India, the second-largest consumer of the metal, due to excise duty, state taxes, and making changes.
What is the price of gold today in Delhi?
In New Delhi, the gold price today of 22-carat gold is at Rs 48,460 per 10 gm, while in Chennai it fell to Rs 47,010. In Mumbai, the rate was Rs 48,470 according to the Good Returns website. The price of 24-carat gold in Chennai was Rs 51,280 per 10 gm.
Economic downturn due to coronavirus pandemic and weakness in the US dollar encouraged investors to infuse a whopping Rs 6,657 crore in gold exchange-traded funds in 2020. In comparison, a net inflow of just Rs 16 crore was seen in the entire 2019. The inflow came after witnessing a net pullout from safe-haven assets for six consecutive years, mainly on fears of a global slowdown and volatility in equity and debt markets.
Gold with its safe-haven appeal emerged as one of the best performing asset classes and a preferred investment destination among investors in 2020, as investors put in a net sum of Rs 6,657 crore in 14 gold-linked ETFs.
Gold accelerated its slide below the $1,900 mark on Friday, slumping around 3% and dragging down other precious metals as a jump in U.S. Treasury yields hammered bullion’s safe-haven appeal. “Gold is having a major fundamental shift for many investors and they’re starting to abandon their safe haven trade for gold,”.
While gold has generally been seen as a hedge against the inflation and currency debasement that could result from the widespread stimulus, especially last year, that has changed as higher bond yields increase the opportunity cost of holding non-interest yielding bullion.
Gold’s slide came despite a retreat in the dollar, which reversed gains from an initial climb to a more than a one-week peak.
Will gold price go down?
On the downside, the 200-day SMA at $1,840 aligns as the next critical support. With a daily close below that level, the price could target $1,820 (static support) ahead of $1,800 (psychological level/static support).
Resistances, on the other hand, could be seen at $1,870 (50-day SMA), $1,890 (100-day SMA) and $1,900 (psychological level).