Gold December futures contracts at MCX opened flat today at Rs 78,235 per 10 gram, which is down by 0.24% or Rs 187 while silver December futures contracts were trading at Rs 94,092/kg, down by 0.2% or Rs 192.
Gold prices fell by Rs 1,000/ 10 grams in the last one week while silver prices fell by Rs 4,600/kg in the same period.
On Monday, gold and silver settled on a weaker note in the domestic and international markets. Gold December futures contract settled at Rs 78,422 per 10 grams with a loss of 0.56% and silver December futures contract settled at Rs 94,284 per kilogram with a loss of 1.26%.
Gold and silver traded sideways to negative amid the biggest market event week of the year. The U.S. Presidential election begins today and results will come out later this week. The U.S. Fed policy meeting is also scheduled this week and the Chinese stimulus meeting is also scheduled this week.
“Due to the biggest eventful week, market participants are sidelined and cautious. Gold and silver are showing profit-taking at higher levels as the U.S. 10-year bond yields are sustaining above 4.25% levels,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.
Today, the US Dollar Index, DXY, was hovering near the 103.90 mark, gaining 0.01 or 0.01%.However, the dollar index shows some profit taking from higher levels and global equity markets were mixed and supporting safe-haven demand for precious metals.“We expect gold and silver prices to remain volatile this week ahead of the U.S. Presidential elections, the U.S. 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,” Jain added.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 78,200-77,950 and resistance at Rs 78,660-78,850.
- Silver has support at Rs 93,600-92,850 and resistance at Rs 94,950-95,600.
Jain suggests staying away from bullion markets in today’s session ahead of the U.S. Presidential elections.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)