Gold June contracts at MCX opened flat at Rs 72,105 per 10 grams on Thursday, however, silver July contracts were down by Rs 1,438 or 1.5% at Rs 94,724/kg amid the volatility and weakness in the global markets.
The dollar index and the U.S. bond yields surged after hawkish statements of the U.S. Fed member Kashkari, as he said that the U.S. interest rates will be held steady for longer or even raised if necessary.
Today, the US Dollar Index, DXY, was hovering near the 105.13 mark, rising 0.51 or 0.49%.
“Weakness in the global equity markets and geo-political tensions are supporting prices at lower levels. We expect gold and silver prices to remain volatile this week ahead of the U.S. GDP and personal consumption expenditure data and European inflation data but gold and silver could hold its support levels of $2310 and $30.40 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.
At MCX, Jain suggests that gold has support at Rs 72,040- Rs 71,850 and resistance at Rs 72,480- Rs 72,720 while silver has support at Rs 95,500- Rs 94700 and resistance at Rs 96,800- Rs 97,400.“We suggest buying gold on dips around 72,000 with a stop loss of 71,760 for the target of 72,500,” Jain added.In the domestic markets, gold and silver prices had settled on a mixed note on Wednesday. Gold August futures contract settled at Rs 72,271 per 10 grams with a loss of 0.19% while silver July futures contract settled at Rs 96,162 per kilogram with a gain of 0.75%.International markets also settled on a mixed note. Gold June futures contracts ended at $2,341.20 per troy ounce, down 0.65% while silver July futures contracts settled at $32.37 per troy ounce, up 0.73%.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)