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Gold price today, 27 May 2021: Gold prices fall after hitting Rs 49,000; check support, resistance levels

There is some volatility in gold on the rising dollar as investors are awaiting the US personal consumption report to gauge inflationary pressure. Image: Reuters

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices were seen struggling in the domestic market on Thursday, a day after it crossed Rs 49,000 per 10 gram mark in intraday deals. On Multi Commodity Exchange, gold June futures were trading volatile at Rs 48,795 per 10 gram, as against the previous close of Rs 48,784. Silver July futures were trading weak at Rs 71,374 per kg, down Rs 37, as compared to the last close of Rs 71,411. COMEX gold was trading 0.4 per cent lower at near $1893/oz after a 0.2 per cent gain in the previous session. In the global market, gold prices retreated from a 4-1/2-month high on the back of a rise in the US dollar and bond yields, while investors awaited key economic readings out of the United States this week. Spot gold was down 0.1 per cent at $1,894.88 per ounce after hitting its highest since January 8, 2021 at $1,912.50 on Wednesday. US gold futures declined 0.3% to $1,898 per ounce, according to Reuters.

Bhavik Patel, Senior Technical Research Analyst, Tradebulls Securities

Gold yesterday climbed above $1900 but broke below $1900 during closing hours. Any correction might be shallow and short lived at best as the major fundamental drivers who have taken gold substantially higher are absolutely still in play. Gold has solid support at $1848 where 200 day moving average is. It should also be noted that in COMEX, gold has witnessed a golden cross between 50 and 100 day exponential moving averages. Last time gold tried to break and close above $1900 was in January and still it remains a key resistance level. In MCX, gold has managed to cross above its 200 day exponential moving average but still has to give closing above it. Rs 48,200-47,900 is a good support level for gold and any probable dip around that level is a good opportunity to go long with stop loss of Rs 47,200 and target of Rs 49,600. Next resistance for gold comes between Rs 49,500-49,700.

Rahul Gupta, Head of Research-Currency at Emkay Global Financial Services

There is some volatility in gold on the rising dollar as investors are awaiting the US personal consumption report to gauge inflationary pressure, US GDP and jobless claims data all due later today. The safe-haven demand will remain intact but any upbeat data point may put upward pressure on dollar, thus if MCX gold breaks the crucial support of Rs 48,600, we may see a fall towards Rs 47,900, while Rs 50,000 will act as a crucial resistance.

Ravindra Rao ,CMT, EPAT, VP- Head Commodity Research at Kotak Securities

Gold has corrected from Jan. highs amid some recovery in US dollar and profit-taking by ETF investors. However, supporting price is choppiness in equity markets, loose monetary policy stance of major central banks and China’s efforts to limit raw material prices. Gold has rallied sharply in last few days and is now seeing some profit-taking which may extend if the US dollar recovers further or if equity markets stabilize.”

(The views in this story are expressed by the respective experts of research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

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