Gold October futures contracts at MCX opened flat on Friday at Rs 70,353 per 10 grams, which is up by 0.31% or Rs 217 while silver September futures contracts were trading higher at Rs 82,000/kg, up by 2.42% or Rs 1,939.
On Thursday, gold and silver settled on a positive note in the international markets. Domestic markets were closed on Thursday on account of Independence Day and settled on a weaker note on Wednesday. Gold October futures contract settled at Rs 70,136 per 10 grams with a loss of 0.80% and silver September futures contract settled at Rs 80,061 per kilogram with a loss of 1.22%.
Gold and silver prices showed very high price volatility on Thursday in the international markets and rebounded again amid upbeat U.S. retail sales data. The U.S. retail sales grew 1.0% in July against expected growth of 0.4% and well above the previous month’s contraction of 0.2%. The U.S. manufacturing activity data disappointed once again and also supports safe-haven demand for precious metals.
“The U.S. jobless claims declined to 2,27,000 against expected claims of 2,36,000 and the U.S. 10-year bond yields crossed 3.90% level once again and could limit gains of precious metals. We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index but could hold its key support level of $2,445 per troy ounce and $27.40 per troy ounce respectively on a closing basis,” said Manoj Kumar Jain of Prithvinfinmart Commodity Research.
Today, the US Dollar Index, DXY, was hovering near the 102.93 mark, falling 0.05 or 0.04%.“The volatility was due to concerns over a stock market selloff and tensions in the Middle East. Spot gold, which was close to a record high last week, fell by more than 1% before bouncing back to just below $2,435 an ounce. Fears of a deepening US economic slowdown and worries that the Federal Reserve might be slow to cut interest rates weighed on the markets. In the Middle East, tensions are high with fears of a potential conflict between Israel and Iran,” said Neha Qureshi Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold is having support at 69,850-69,660 and resistance at 70,440-70,770
- Silver has support at 79,650-79,100 and resistance at 81,100-82,500.
“We suggest buying gold around 70300 with a stop loss of 70060 for the target of 70800,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)