Amid weakness in the dollar index and downbeat U.S. JOLTS job openings data, Gold October futures contracts at MCX opened flat on Thursday at Rs 71,484 per 10 grams, rising 0.03% or Rs 18 while silver December futures contracts were trading at Rs 83,750/kg, up 0.22% or Rs 185.
In this week so far, the prices of gold have traded flat, tumbling by merely Rs 127 while silver has fallen by nearly Rs 1,500 per kilogram.
On Wednesday, gold and silver settled on a positive note in the international as well as the domestic markets. Gold October futures contract settled at Rs 71,466 per 10 grams with a gain of 0.12% and silver December futures contract settled at Rs 83,565 per kilogram with a gain of 0.38%.
Gold and silver showed very high price volatility and extended their fall in the early trading session but recovered from their lows after downbeat U.S. JOLTS job openings data. The U.S. Jobs and Labor Turnover Survey (JOLTS) showed July job openings declined to the lowest level since January of 2021.
A decline in the new job openings pushed the dollar index and the U.S. 10-year bond yields lower and supported gold and silver prices. Gold and silver prices were also gained amid short coverings and bargain buying at lower levels ahead of the U.S. job data.“The un-inverted U.S. yield curve also shows that the U.S. economy is healthier and avoiding recession and supporting precious metals prices. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the U.S. job data but it could hold its key support level of $2,464 and $27.80 per troy ounce respectively,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 101.33 mark, falling 0.03 or 0.02%.
Range for gold and silver by Manoj Kumar Jain:
- At mcx, gold is having support at 71,220-70,950 and resistance at 71,660-71,880.
- Silver has support at 83,100-82,550 and resistance at 84,200-84,850.
“We suggest buying silver on dips around 83150 with a stop loss of 82600 for the target of 84200,” Jain further added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)