Gold December futures contracts at MCX opened flat on Wednesday at Rs 78,545 per 10 gram, which is down by 0.14% or Rs 111 while silver December futures contracts were trading at Rs 99,505/kg, down by 0.46% or Rs 467.
On Tuesday, gold and silver settled on a positive note in the domestic and international markets. December futures contract settled at Rs 78,656 per 10 grams with a gain of 0.79% and silver December futures contract settled at Rs 99,972 per kilogram with a gain of 2.59%.
Gold and silver showed solid strength on Tuesday as gold prices hit fresh lift high and crossed $2,750 per troy ounce and silver also hit fresh 12-year highs hitting $35 per troy ounce levels.
Uncertainty over U.S. Presidential elections and BRICS nations’ aim to move towards de-dollarization is driving precious metals. The U.S. elections are round the corner and increasing uncertainty over the winning of Kamala Harris is supporting safe-haven demand for precious metals.
Today, the US Dollar Index, DXY, was hovering near the 104.15 mark, gaining 0.07 or 0.07%.
The BRICS summit aim is to aid more countries under the umbrella and counter Western-led world order could also increase the process of de-dollarization and driving gold and silver. However, the dollar index and the U.S. bond yields are also showing strength and could restrict gains of gold and silver.“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geo-political tensions and gold and silver could hold $2,664 and $32.40 per troy ounce levels 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 has support at Rs 78,400-78,100 and resistance at Rs 78,850-79,140.
- Silver has support at Rs 99,000-97,700 and resistance at Rs 1,01,000-1,02,400.
“We suggest booking profits in gold and silver in the long positions and wait for some corrective dips for initiating fresh long positions. Overall bullish trend intact of gold and silver,” 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)