Gold prices drop in India today just before the US presidential elections result and a volatile currency market. Besides, market participants are keeping close tabs on the Federal Open Market Committee (FOMC) which began its two-day meeting on Wednesday. On MCX, gold December futures were trading 0.5 percent or Rs 250 down for Rs 51,349 per 10 gram, while the silver December futures were ruling at Rs 61,684 per kg, down Rs 1,000 or 1.60 percent. Previously, gold and silver futures ended in the positive territory with over 1 percent gain. The uncertainty that President Trump may win a second term is paving the way for safe-haven US dollar to flourish which is generally bad for gold prices.
In the first week of August, gold saw a record high of Rs 56,191 per 10 gram while silver scaled to a fresh all-time high of Rs 77,949 per kg. Gold prices likely to go up after election fever is over. High volatility in gold and trading in the range of $1920-$1870. On MCX, the range is expected to be between Rs 50500-51800 per 10 gram. On MCX, Rs 50,000 is proving to be a strong base and any long positions could be maintained with Rs 50000 stop loss.
