On Monday, gold prices on MCX for June futures contracts opened 0.47% or Rs 342 lower to trade at Rs 72,35 per 10 grams while MCX July silver contracts were up by Rs 273 or 0.32% to Rs 84,637 per kg.
Last week witnessed notable price fluctuations in both gold and silver, spurred by disappointing U.S. job data. The news fueled speculation of potential Federal Reserve rate cuts at the upcoming September policy meetings, consequently bolstering the prices of gold and silver.
Moreover, gold experienced heightened demand attributed to robust purchases by global central banks and escalating geopolitical tensions.
Gold prices held steady on Monday as investors awaited key U.S. inflation reports, which could shed more light on the timing of the Federal Reserve’s first rate cut.
In the U.S., spot gold held its ground at $2,358.42 per ounce by 0229 GMT. Prices hit a two-week high in the previous session.Today, the US Dollar Index, DXY, was hovering near the 105.31 mark, rising 0.01 or 0.01%.Notably, the Chinese central bank persisted in expanding its gold reserves, adding 1.9 metric tons in April, marking the 18th consecutive month of such acquisitions. Additionally, other central banks worldwide significantly increased their gold holdings in the first quarter, further underpinning gold prices. Silver also reaped the benefits of the industrial metals‘ strength and optimism surrounding potential Fed rate cuts.Range for bullion on MCX by Rahul Kalantri, VP Commodities, Mehta Equities:
- Gold is supported at Rs 72,410 and Rs 72,260, with resistance levels at Rs 72,980 and Rs 73,290.
- For Silver, support is identified at Rs 83,840-83,080, while resistance stands at Rs 85,740 and Rs 86,280.
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