Gold prices continue downward trend post-US election results

Gold prices plunge as Trump’s decisive win drives up dollar Gold prices continued their downward trajectory on Thursday, following the outcome of the recent US presidential elections. The December futures contracts for gold on the Multi Commodity Exchange (MCX) opened with a decline of 0.37 percent at Rs.76,369 per 10 grams. Meanwhile, silver futures for […] The post Gold prices continue downward trend post-US election results appeared first on PGurus.

Nov 7, 2024 - 12:41
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Gold prices continue downward trend post-US election results
Experts suggest a short-term bearish sentiment in the gold market

Gold prices plunge as Trump’s decisive win drives up dollar

Gold prices continued their downward trajectory on Thursday, following the outcome of the recent US presidential elections. The December futures contracts for gold on the Multi Commodity Exchange (MCX) opened with a decline of 0.37 percent at Rs.76,369 per 10 grams. Meanwhile, silver futures for December were trading 0.24 percent lower at Rs.90,601 per kg.

In the last two days, gold prices have fallen by Rs.2,100 per 10 grams, and silver prices have dropped by Rs.4,050 per kg, reflecting the broader market trend.

According to the India Bullion and Jewellers Association Ltd (IBJA), the price of 24-carat gold was quoted at Rs.76,570 per 10 grams, while 22-carat gold was priced at Rs.74,720 per 10 grams. Other gold variants saw similar declines: 20-carat gold was priced at Rs.68,130 per 10 grams, and 18-carat gold at Rs.62,201 per 10 grams.

Pranav Mer, Vice President of EBG-Commodity & Currency Research at JM Financial Services, attributed the drop in gold prices to a strong US dollar, following Donald Trump’s victory in the presidential election. “Gold and most other commodities are trading in the negative territory, weighed down by the dollar’s strength,” he said, adding that attention now shifts to the upcoming US Federal Reserve policy decisions and other economic indicators.

Mer also suggested that gold prices could see further corrections if key support levels are breached, but warned that any rebound would depend on the strength of these support levels. “Resistance is seen at Rs.78,000 on MCX and $2,755 in international spot markets,” he explained.

Gold prices have been experiencing significant volatility, fluctuating between Rs.77,500 and Rs.78,500 per 10 grams in recent days. The sharp movements can be linked to the rally in the dollar index, which surged to 105 after Trump’s victory. According to Jateen Trivedi of LKP Securities, “This dollar strength pushed gold to lows of Rs. 77,500 per 10 grams and $2,700 in dollar terms.”

Experts suggest a short-term bearish sentiment in the gold market, with a critical resistance level at $2,740 and support at $2,680. The direction of gold prices will largely depend on future economic data and any shifts in the global financial landscape.

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The post Gold prices continue downward trend post-US election results appeared first on PGurus.

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