Gold October futures contracts at MCX opened flat on Tuesday at Rs 71,615 per 10 gram, which is down by 0.02% or Rs 13 while the silver December futures contracts were trading at Rs 83,595/kg, down by 0.06% or Rs 50.
In the last one week, gold prices have traded flat while silver prices have fallen by Rs 1,000/kg in the same time period.
On Monday, gold and silver settled on a positive note in the international as well as the domestic markets.Gold October futures contract settled at Rs 71,628 per 10 grams with a gain of 0.28% and silver December futures contract settled at Rs 83,645 per kilogram with a gain of 1.07%.
Gold and silver showed very high price volatility and recovered from their lows amid possibilities of interest rate cuts by the ECB in its policy meeting scheduled this week.
Gold and silver also gained amid possibilities of a dovish stance of the US Fed on the monetary policy in next week’s policy meeting after downbeat US job data. The US non-farm employment reports released on Friday shows that job growth is slower in the U.S. and less jobs created in the month of August than expected.
Today, the US Dollar Index, DXY, was hovering near the 103.22 mark, falling 1.20 or 0.15%.“The US equity markets also recovered from their lows and also supported gold and silver prices. However, the dollar index is showing strength and could limit gains of precious metals. 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 US 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 Prithvi Finmart Commodity Research.Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold is having support at 71,350-71,100 and resistance at 71,850-72,080.
- Silver has support at 83,000-82,250 and resistance at 84,400-85,100.
“We suggest buying gold on dips around 71,350 with a stop loss of 71,080 for the target of 71,850,” 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)