Gold August futures along with silver September futures contracts opened flat on Thursday as the former opened down by 0.06% or Rs 42 at Rs 68,910 per 10 gram while the latter opened down by 0.19% or Rs 164 at Rs 84,730 per kilogram.
The yellow metal has fallen by Rs 4,000/10 gm in this week so far while silver has declined by nearly Rs 5,000/kg in this week.
On Wednesday, gold and silver settled on a mixed note in the domestic and the international markets. Gold August futures contract settled at Rs 68,952 per 10 grams with a gain of 0.65% while silver September futures contract settled at Rs 84,894 per kilogram with a loss of 0.03%.
Gold and silver prices showed very high volatility and were settled on a mixed note ahead of the key U.S. economic data. Gold and silver gained in the international markets amid downbeat U.S. flash manufacturing PMI and new home sales data.
Global equity markets also showed sell-off and supported precious metals. Silver prices were unable to hold its gains due to weakness in the industrial metals and downbeat manufacturing activities in the U.S. and the EU.Today, the US Dollar Index, DXY, was hovering near the 104.27 mark, falling 0.13 or 0.12%.“Chinese economic data also disappointed bullion markets and poor demand from China is also limiting gains of precious metals. However, strong possibilities of Fed rate cuts in the September policy meetings could support prices. We expect gold and silver prices to remain volatile this week ahead of the U.S. core PCE price index data and the U.S. 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 68,550-68,200 and resistance at 69,250-69,600
- Silver has a support at 84,250-83,600 and resistance at 85,500-86,300.
“We suggest buying gold on dips around 68,200 with a stop loss of 67,700 for the target of 69,200,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)