The week witnessed gains of Rs 900 in gold prices while silver witnessed gains of Rs 2,300 in the same period. MCX gold August futures on Friday opened at Rs 72,455 per 10 grams and silver September futures contracts at Rs 92,171/kg.
Gold and silver showed mild profit-taking in a thin-volume session. However, weakness in the dollar index could support prices. On Thursday, gold and silver settled slightly weaker in the domestic and international markets. Gold August futures contract settled at Rs 72,367 per 10 grams with a loss of 0.05% and silver September futures contract settled at Rs 91,961 per kilogram with a loss of 0.07%.
Gold and silver showed mild profit-taking in the international markets after a solid rally in the previous session. The U.S. market was closed due to the Independence Day holiday and it was a thin volume session. Traders also booked profits ahead of the U.S. job reports. However, overall factors are working in the favour of gold and silver.
Today, the US Dollar Index, DXY, was hovering near the 105.6 mark, falling 0.07 or 0.07%.
The U.S. economic data released this week was weaker than expected, geo-political tensions are escalating in the middle-east and the U.S. Fed Chairman’s comments were also more dovish than expected. Gold and silver could maintain their bullish momentum in the upcoming sessions. “We expect gold and silver prices to remain volatile in today’s session ahead of the U.S. job reports,” said Manoj Kumar Jain of Prithivifinmart Commodity Research.Intraday range by Manoj Kumar Jain:
- At MCX, gold is having support at 72,100-71,850 and resistance at 72,600-72,880
- MCX silver has support at 91,400-90,750 and resistance at 92,650-93,300.
“We suggest buying gold on dips around 72100 with a stop loss of 71850 for the target of 72800,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)