Gold October futures contracts at MCX opened flat on Thursday at Rs 71,934 per 10 gram, which is up by 0.27% or Rs 191 while silver September futures contracts were trading at Rs 84,477/kg, up by 0.6% or Rs 500.
In this week so far, the prices of gold have traded flat, up by Rs 150/10 gram while silver has dipped Rs 700 per kilogram.
On Wednesday, gold and silver settled on a weaker note in the domestic and the international markets. Gold October futures contract settled at Rs 71,743 per 10 grams with a loss of 0.53% and silver December futures contract settled at Rs 86,516 per kilogram with a loss of 2.06%.
Gold and silver pooled back amid rebound in the dollar index ahead of the U.S. core PCE price index data and profit taking in crude oil. The dollar index tested 101 marks once again and limits gains of precious metals.
Gold and silver prices also plunged amid ease of safe-haven demand and increased investors’ risk appetite. Tensions in the middle-east are still high but Iran has not retaliate on Israel yet. The U.S. is also trying for a ceasefire between Israel and Hamas.Today, the US Dollar Index, DXY, was hovering near the 103.22 mark, falling 1.20 or 0.15%.“However, the Fed rate cut hopes and upbeat U.S. consumer confidence is supporting the price of precious metals. We expect gold and silver prices to remain volatile in this week amid volatility in the dollar index and ahead of the U.S. core PCE price index data but it could hold its key support level of $2,464 per troy ounce and $28.50 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Ranges for gold and silver from Manoj Kumar Jain:
- At MCX, gold is having support at 71,500-71,220 and resistance at 71,950-72,200.
- Silver has support at 85,800-85,150 and resistance at 87,200-88,000.
“We suggest staying away from gold and silver in today’s session ahead of the U.S. prelim GDP data later today,” 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)