Amid increased geo-political tensions, gold October futures contracts at MCX opened at Rs 70,305 per 10 gram on Friday, which is up by 0.50% or Rs 351 while silver September futures contracts were trading at Rs 83,684/kg, up by 1.32% or Rs 1,090.
Gold prices rose by a little over 1% in Thursday’s session by Rs 800/10 gm but were unable to sustain the gains and fell by Rs 535 from day’s high, eventually gaining Rs 695 in the last 2 days while silver traded flat in the same time period, up by Rs 90.
On Thursday, gold and silver settled on a mixed note in the domestic and international markets. Gold October futures contract settled at Rs 69,954 per 10 grams with a gain of 0.43% and silver September futures contract settled at Rs 82,594 per kilogram with a loss of 1.20%.
Gold and silver showed very high price volatility and gained in the early trading session but were unable to sustain at higher levels. Heightened tensions in the middle-east after an airstrike in Iran and Lebanon killed top Hamas and Hezbollah officials supported safe-haven demand for gold.
The U.S. economic data released on Thursday were mixed as the U.S. jobless claims surged to 2,49,000 against previous claims of 2,35,000 and at highest levels since August 2023. The U.S. flash manufacturing PMI data was also disappointing as the reading came at 46.8 in July against the previous reading of 48.5 and this is the lowest reading since November 2023.Today, the US Dollar Index, DXY, was hovering near the 104.35 mark, falling 0.07 or 0.06%.“We expect gold and silver prices to remain volatile in today’s session ahead of the U.S. job 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 69,740-69,500 and resistance at 70,220-70,450
- Silver has support at 82,100-81,450 and resistance at 83,200-84,000.
“We suggest buying gold on dips around 69,850 with a stop loss of 69,600 for the target of 70,400,” 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)