Gold traded flat on Monday as investors awaited the US Fed Chairman’s speech and the ECB policy meeting later this week. MCX Gold August futures shed 41 points or 0.06% to Rs 73,228 per 10 gms. Meanwhile, September silver futures fell 0.17% or 161 points to Rs 92,948 per kilogram.
The yellow metal has risen by Rs 1,600 in July so far, while silver prices have increased by Rs 3,400 in the same period.
On Friday, gold and silver settled on a weaker note in the domestic and international markets. Gold August futures contract settled at Rs73,269 per 10 grams with a loss of 0.06% and silver September futures contract settled at Rs 93,109 per kilogram with a loss of 1.15%.
Gold and silver showed profit-taking from their highs after U.S. PPI surged in the month of June. The U.S. PPI came up by 0.2% in June against an expected reading of 0.1% and core PPI came up by 0.4% in June against the expected reading of 0.2%.
“The surge in the U.S. PPI and core PPI data and decline in the U.S. jobless claims restricted the gains of the precious metals. However, the University of Michigan’s inflation expectations came down to 2.9% and the dollar index also slipped to 6-week lows and supported prices of gold and silver at lower levels,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 104.21 mark, rising 0.12 or 0.12%.“The U.S. 10-year bond yields also slipped below 4.20% and could also support prices of gold and silver in the upcoming sessions. We expect gold and silver prices to remain volatile this week ahead of the US Fed Chairman’s speech and ECB policy meetings,” Jain added.Ranges for gold and silver:
- At MCX, gold is having support at 73,040-72,800 and resistance at 73,500-73,850
- MCX silver has support at 92,200-91,500 and resistance at 94,000-94,800.
“We suggest buying gold on dips around 73,040 with a stop loss of 72,800 for the target of 73,500,” says Manoj Kumar Jain.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)