Gold December futures contracts at MCX opened flat today at Rs 76,120 per 10 gram, which is down by 0.35% or Rs 270 while silver December futures contracts were trading at Rs 91,825/kg, up by 0.49% or Rs 450.
Gold as well as silver prices have surged slightly in this week so far. The former was up by Rs 400/10 gm while the latter gained Rs 430/kg.
On Wednesday, gold and silver settled on a positive note in the domestic market but ended on a mixed note in the international markets. Gold December futures contract settled at Rs76,390 per 10 grams with a gain of 1.03% and silver December futures contract settled at Rs91,375 per kilogram with a gain of 0.72%.
Gold and silver showed very high price volatility amid the Middle-Eastern crisis and strength in the dollar index. Gold prices hit a record high this week but unable to hold gains after upbeat U.S. ADP non-farm payroll data. The U.S. private sector created 1,43,000 jobs last month against expectations of 1,24,000.
The robust labor market and heightened tensions in the Middle East are supporting the dollar index and pushing gold prices lower.
Today, the US Dollar Index, DXY, was hovering near the 101.78 mark, gaining 0.10 or 0.10%.“However, silver extended its gains and inching closer to $32 per troy ounce levels after decline in the European inflation data and strength in the Chinese equity markets. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and ahead of the U.S. job data but it is expected to hold its support level of $2,600 and $30.40 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 has support at Rs 76,040-75,800 and resistance at Rs 76,720-77,000.
- Silver has support at Rs 90,800-90,220 and resistance at Rs 92,100-92,800.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)