Gold August futures along with silver September futures contracts opened flat on Monday as the former opened up by 0.27% or Rs 194 at Rs 73,184 per 10 gram while the latter opened up by 0.03% or Rs 30 at Rs 89,676 per kilogram.
Gold prices went down Rs 1,100/10 gm in the last 2 trading sessions while silver fell by Rs 1,850/kg in the same time period.
On Friday, gold and silver settled on a weaker note in the international markets and despite weakness in the rupee, domestic markets also settled on a weaker note. Gold August futures contract settled at Rs 2,990 per 10 grams with a loss of 1.57% and silver September futures contract settled at Rs 89,646 per kilogram with a loss of 2.32%.
Gold and silver showed heavy sell-off from their highs last week amid mixed U.S. economic data and rebound in the dollar index. The U.S. manufacturing activities data was better than expected and increased uncertainty over Fed rate cuts in the September policy meetings. The ECB also kept interest rates unchanged at 4.25% and supported the dollar index.
Safe-haven demand in the U.S. dollar amid uncertainty over the Presidential bid of Joe Biden after assassination attack on Donald Trump also pushed gold and silver lower. However, surge in the U.S. jobless claims and recovery in the Japanese Yen supported prices of precious metals.Today, the US Dollar Index, DXY, was hovering near the 104.29 mark, falling 0.11 or 0.10%.“We expect gold and silver prices to remain volatile this week ahead of the U.S. core PCE price index data and first look at the second quarter GDP data,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Ranges for gold and silver by Manoj Kumar Jain:
- At mcx, gold is having support at 72,650-72,300 and resistance at 73,330-73,700
- Silver has a support at 88,800-88,000 and resistance at 90,500-91,350
“We suggest staying away from gold and silver in today’s session ahead of the Indian Union Budget on 23rd July,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)