Gold price today: Rates drop 1% on profit booking; experts unveil strategy for MCX Gold

Gold price today: Profit booking at higher levels, coupled with weak global cues, dragged gold prices down by over 1 per cent in the domestic futures market on Monday morning.

Gold prices in international markets slipped from a three-week high, according to Reuters, as investors took profits and traders recalibrated their expectations for Federal Reserve rate cuts, awaiting additional data to gauge the outlook for interest rates.

Geopolitical tensions, driven by renewed fears of nuclear risks in the ongoing Russia-Ukraine conflict, have supported gold prices and fueled safe-haven demand.

" For now, gold is likely to trade in a range of ₹77,000– ₹78,300 on MCX. Elevated volatility is anticipated," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

A sharp gain in the stock market also weighed on gold prices. Market benchmarks, the Sensex and the Nifty 50 jumped over a per cent each, following solid gains of over 2 per cent in the previous session.

Experts' strategy for MCX Gold

Manoj Kumar Jain of Prithvifinmart Commodity Research suggests buying gold on dips around ₹77,300 with a stop loss of ₹77,040 for the target of ₹78,000 and also suggests buying silver on dips around ₹90,300 with a stop loss of ₹89,650 for the target of ₹91,800.

"Gold has support at $2,694-2,670, while resistance at $2,728-2,745 per troy ounce and silver has support at $31.05-30.70, while resistance is at $31.60-31.88 per troy ounce in today’s session. On the MCX, gold has support at ₹77,330-77,040 and resistance at ₹77,880-78,220, while silver has support at ₹90,150-89,500 and resistance at ₹91,400-92,200," said Jain.

Renisha Chainani, the head of research at Augmont - Gold For All, underscored that the Russia-Ukraine war, which started on February 22, 2022, has been going on for more than 1,000 days, and it is still impacting the bullion market to a great extent.

"We will likely see profit-booking and consolidation in gold prices this week as prices have increased too far. Important support levels are 50 DMA around $2,650 ( ₹75,500). Gold is in an uptrend until the prices are trading above $2,550 ( ₹73,700). We are likely to see dip-buying until these levels are sustained," said Chainani.

According to Rahul Kalantri, VP of commodities at Mehta Equities, gold has support at $2,682–$2,667, with resistance between $2,722 and $2,735. Silver has support at $30.82–$30.65, with resistance at $31.28–$31.45. In the Indian market, gold is supported at ₹77,380– ₹77,150, with resistance at ₹77,850– ₹78,040. Silver's support is at ₹90,050– ₹89,450, while resistance lies between ₹91,420 and ₹91,980.

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