Gold prices maintaining its downward trend posting a 6 per cent drop last week. On the Multi Commodity Exchange(MCX), the gold price in India for 10 gram of 22-carat remains below Rs 46,300 and gold rate for 10 gram of 24-carat is around Rs 47,220.
Even, Silver witnessed a significant drop on Monday, June 21. July silver futures were dropped down by 0.27 per cent lower at Rs 67,414 a kilogram.
Even the gold prices in the international market has dropped, the US Treasury yields fell to their lowest since March , reducing the opportunity cost of holding bullion, which pays no return.
Tapan Patel, Senior Analyst (Commodities) of HDFC Securities stated, "Gold prices traded steady with COMEX Spot gold prices were trading near $1775 per ounce, up by 0.65 per cent in the morning trade. The yellow metal witnessed marginal recovery after shedding 6 per cent in the previous week, reporting the worst week in the last 15 months."
Patel further added, "We expect gold prices to trade sideways to down for the day with COMEX gold support at $1760 and resistance at $1800 per ounce. MCX Gold August futures support lies at Rs. 46700 and resistance at Rs. 47400 per 10 gram."
According to reports, the MCX gold futures for August delivery were traded higher by Rs 222, or 0.47 per cent, at Rs 47,180 per 10 gram in a business turnover of 10,853 lots.