Gold December futures contracts at MCX opened on Monday at Rs 76,750 per 10 gram, which is down by 0.68% or Rs 522 while silver December futures contracts were trading at Rs 90,779/kg, down by 0.54% or Rs 490.
On Friday, gold and silver settled on a weaker note in the domestic and international markets. Gold December futures contract settled at Rs 77,272 per 10 grams with a loss of 0.18% and silver December futures contract settled at Rs 91,269 per kilogram with a loss of 1.13%.
Gold and silver were unable to hold its previous session’s gain and plunged again amid a rebound in the dollar index. The US consumer sentiment surged to 73 and also pushed gold and silver prices lower.
The Chinese central bank also paused its gold buying for six months from October as per official data released last week. The Victory of Donald Trump in the US Presidential elections also creates a lot of uncertainty in the global financial markets and market participants are booking profits in their long positions in precious metals.
“We expected the US inflation data releases this week could give further directions to bullion markets,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.
“However, the overall long-term trend of gold and silver remains bullish. We expect gold and silver prices to remain volatile this week ahead of the US inflation data,” he added.Today, the US Dollar Index, DXY, was hovering near the 105.03 mark, gaining 0.03 or 0.03%.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 77,000-76,620 and resistance at Rs 77,500-77,750.
- Silver has support at Rs 90,450-89,600 and resistance at Rs 91,850-92,600.
Manoj Jain suggests selling gold on the rise around Rs 77,600 with a stop loss of Rs 77,880 for the target of Rs 77,000.
Jain suggests staying away from bullion markets in today’s session ahead of the US 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)