Gold August futures along with silver September futures contracts opened flat on Tuesday as the former opened up by 0.18% or Rs 133 at Rs 73,604 per 10 gram while the latter opened up by 0.29% or Rs 273 at Rs 92,845 per kilogram.
The yellow metal has gained Rs 1,600/10 gm in the last one month while silver has surged by Rs 3,300/kg in the month of July so far.
Gold and silver were settled on a mixed note amid no clarity on the timing of the Fed rate cuts. On Monday, gold and silver settled on a mixed note in the domestic and international markets. Gold August futures contract settled at Rs 73,471 per 10 grams with a gain of 0.28% while silver September futures contract settled at Rs 92,572 per kilogram with a loss of 0.58%.
Fed Chair Jerome Powell said on Monday the three U.S. inflation readings over the second quarter of this year “add somewhat to confidence” that the pace of price increases is returning to the Fed’s target in a sustainable fashion, remarks that suggest a turn to interest rate cuts may not be far off.
Traders continue to bet on a September rate cut, and two more before the end of the year. Lower rates reduce the opportunity cost of holding non-yielding bullion.Today, the US Dollar Index was hovering near the 104.33 mark, rising 0.14 or 0.14%.“The dollar index recovered from its lows after assassination attack on the former US President last week and limited gains on precious metals. We expect gold and silver prices to remain volatile this week ahead of the ECB policy meetings,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Ranges for gold and silver on MCX:
- At mcx, gold is having support at 73,220-73,040 and resistance at 73,720-74,000
- MCX silver has support at 92,000-91,400 and resistance at 93,200-94,000
We suggest buying silver on dips around 92,000 with a stop loss of 91,400 for the target of 93,200, Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)