Post the dovish comments of the Fed, gold prices rose a little over Rs 900 and opened at Rs 72,460 per 10 grams on Thursday, while silver gained over Rs 2,000 since the Fed’s commentary, opening at Rs 91,904/kg.
Gold and silver posted solid gains after the Fed commentary and profit-taking in the dollar index. On Wednesday, gold and silver settled on a positive note in the domestic and international markets. Gold August futures contract settled at Rs 72,403 per 10 grams with a gain of 1.19% and silver September futures contract settled at Rs92,021 per kilogram with a gain of 2.37%.
Fed Chairman while speaking at the European Central Bank’s conference in Portugal said that the central bank took necessary steps to reduce inflation but they will see some more evidence that the inflation is moving in a sustainable downtrend towards our target rate of 2.0% before loosening monetary policy.
After the comments, market expectations for two rate cuts in this year increased once again and supported bullion prices. The dollar index slipped below 105 levels and US economic data released was largely favorable for bullion markets as the jobless claims surged to 2,38,000, ADP non-farm employment declined to 1,50,000, ISM services PMI slipped to 48.8 and factory orders contract by 0.5% and supported bullion prices.
Today, the US Dollar Index, DXY, was hovering near the 105.32 mark, falling 0.08 or 0.07%.“We expect gold and silver prices to remain volatile this week ahead of the U.S. job reports later this week,” said Manoj Kumar Jain of Prithivifinmart Commodity Research.Intraday range by Manoj Kumar Jain:
- At MCX, gold is having support at 72,150-71,880 and resistance at 72,660-72,850.
- MCX silver has a support at 91,450-90,700 and resistance at 92,800-93,350.
“We expect range bound movement in gold and silver in today’s session due to holiday in the U.S,” Jain added.
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