Gold October futures contracts at MCX opened flat today at Rs 71,505 per 10 gram, which is up by 0.11% or Rs 79 while silver December futures contracts were trading at Rs 83,049/kg, up by 0.35% or Rs 292.
The prices of gold fell by Rs 400/10 gm in the last 2 days while silver dipped by Rs 1,900 per kilogram.
On Friday, gold and silver settled on a slightly weaker note in the international as well as the domestic markets. Gold October futures contract settled at Rs 71,426 per 10 grams with a loss of 0.68% and silver December futures contract settled at Rs 82,757 per kilogram with a loss of 2.59%.
Gold and silver showed very high price volatility and plunged last week amid mixed U.S. economic data and ahead of the U.S. CPI inflation data this week.
The U.S. non-farm employment came up at 1,42,000 against previous months’ revised data of 89,000 and the unemployment rate also came down to 4.2% in August against the previous month’s rate of 4.3%.Crude oil also showed heavy sell-off amid demand concerns and also pressurized precious metals. However, the dollar index and the U.S. 10-year bond yields slipped last week and supported gold and silver prices at lower levels.Today, the US Dollar Index, DXY, was hovering near the 101.28 mark, falling 0.10 or 0.10%.“The U.S. equity markets also showed heavy sell-off and supported safe-haven buying at lower levels. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets and ahead of the U.S. inflation data and expected to hold its support level of $2,464 and $26.80 per troy ounce respectively on a weekly closing basis” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold is having support at 71,180-70,850 and resistance at 71,770-72,040.
- MCX Silver has support at 82,000-81,100 and resistance at 83,500-84,200.
“We suggest staying away from gold and silver in today’s session due to high volatility in global financial markets,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)