Gold Price Today Tops Rs 48,500 as Bitcoin Tumbles

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Gold price in the Indian market rose on Monday following a positive trend in international spot prices. On Multi- Commodity Exchange (MCX), gold futures were up by 0.28% to Rs 48,540 for 10 grams at 10.10 am on May 24. Silver futures rose 0.62% to Rs 71,490 for a kilogram.

In the international market, gold prices climbed to four-and-half month high on the back of weaker US dollar and growing inflationary pressure. The tumble in the crypto world also lifted safe-haven metal’s appeal.

Spot gold was up 0.2% at $1,883.21 per ounce by 0301 GMT. Last week, gold prices hit their highest level since Jan. 8 at $1,889.75.US gold futures rose 0.4% to $1,884.30 per ounce.

The dollar stood near its lowest levels in three months against the resurgent euro and other European currencies.

“International spot gold and silver prices have started marginally higher this Monday morning in Asian trade. Technically, LBMA Gold Spot is trading on a positive note above $1880 levels further could see $1890-1918 levels. Support is at $1878-$1865 levels. Technically, if LBMA Silver above $27.20 level will continue its bullish momentum up $28.05-$29.00 levels in coming session. Support is at $27.00-$26.20 levels,” Sriram Iyer, senior research analyst at Reliance Securities.

“Domestic gold and silver prices could start flat to marginally higher this Monday morning tracking overseas prices. Technically, MCX gold June could see a bullish momentum up to Rs 48,500-48,700 levels. Support is at Rs 48,340-48,150 levels. Technically, if MCX silver July sustains above Rs 71,000 level can take prices up to Rs 72,100-73,000 levels. Support is at Rs 70,500-69,900 levels,” Iyer added.

“Cryptocurrencies are in a bubble. Bitcoin went from less than a thousand dollars to $65,000 in just four years. When bubbles pop, they usually go down to their fundamental, inherent value,” said Amit Khare, AVP- research commodities, Ganganagar Commodities Limited.

“Gold and Silver showed a negative trend on Friday. But today we can see some recovery from bottom level’s. Traders are advised to go long in dips and also focus important technical levels given below: June gold closing price Rs 48,404, Support 1 – Rs 48,100, Support 2 – Rs 47,900, Resistance 1 – Rs 48,650, Resistance 2 – Rs 49,100. July silver closing price Rs 71,049, Support 1 – Rs 69,950, Support 2 – Rs 68,800, Resistance 1 – Rs 72,200, Resistance 2 – Rs 73,200,” Khare added.

“Prices largely remained supported in the last few sessions by a subdued US dollar and Treasury yields as concern receded over tapering by the US Federal Reserve. Overall, we expect gold prices to consolidate in the range of Rs 48,000-49,000 levels in the short-term,” said ICICI Securities.