Gold December futures contracts at MCX opened lower by 0.55% or Rs 433 today at Rs 78,434 per 10 gram, while silver December futures contracts were trading at Rs 94,676/kg, down by 0.85% or Rs 807.
Gold prices witnessed some profit booking from its all-time high of Rs 79,775/10 grams, falling by Rs 1,341 in just 2 trading sessions.
On Friday, gold and silver prices settled on a positive note in the domestic market while settling on a slightly weaker note in the international markets. Gold December futures contract settled at Rs78,867 per 10 grams with a gain of 0.56% and silver December futures contract settled at Rs 95,483 per kilogram with a gain of 0.90%.
Gold and silver showed very high price volatility and showed profit taking from their highs amid mixed US economic data and strength in the dollar index. The dollar index crossed 104 marks and the US 10-year bond yields also sustaining above 4.25% and limiting gains of gold and silver.
Today, the US Dollar Index, DXY, was hovering near the 103.66 mark, falling 0.62 or 0.60%.
The U.S. non-farm payroll dropped larger than expected and supported gold and silver prices at lower levels. However, uncertainty over U.S. Presidential elections and safe-haven demand of the dollar are restricting gains of precious metals.“We expect gold and silver prices to remain volatile this week ahead of the US Presidential elections, the US Fed policy meetings, volatility in the dollar index and geo-political tensions but gold and silver could hold $2,664 and $30.80 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 78,660-78,3320 and resistance at Rs 79,100-79,350.
- Silver has support at Rs 94,750-94,100 and resistance at Rs 96,200-97,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)