Gold prices continue to fall after the US presidential election and on Thursday, the December future contracts of gold on MCX opened with a decline of 0.37 per cent at Rs 76,369 per 10 grams, while silver December future contracts were trading 0.24 per cent low at Rs 90,601 per kg.
After the US elections, in the last two days, gold prices have fallen by Rs 2,100 per 10 grams and silver prices by Rs 4,050 per kg.
According to the India Bullion and Jewellers Association Ltd (IBJA), the price of 24-carat gold is Rs 76,570 per 10 grams, the price of 22-carat gold is Rs 74,720 per 10 grams, the price of 20-carat gold is Rs 68,130 per 10 grams and the price of 18-carat gold is Rs 62,201 per 10 grams.
Pranav Mer, Vice President, EBG-Commodity & Currency Research, JM Financial Services said that gold and most other commodities are trading in the negative territory, weighed by a strong US dollar as Donald Trump won the presidential race.
The focus now turns on the US Fed's policy outcome and other economic data.
“We expect more correction only if the given supports are breached and sustained, failing to which prices may again resume its upward journey. Resistance is seen at 78,000 on MCX and $2,755 in an international spot" he added.
Gold prices experienced intense volatility, fluctuating sharply between Rs 78,500 and Rs 77,500 per 10 grams, as the US election outcome bolstered the dollar index, which climbed to 105.
“This dollar strength pushed gold to lows of Rs 77,500 per 10 grams and $2,700 in dollar terms,” said Jateen Trivedi from LKP Securities.
A short-term bearish sentiment seems to prevail, with a critical resistance level at $2,740 and support at $2,680, said experts.