Gold December futures contracts at MCX opened flat on Tuesday at Rs 75,556 per 10 gram, which is up by 0.27% or Rs 205 while silver December futures contracts were trading at Rs 89,480/kg, up by 0.33% or Rs 298.
Gold prices fell by Rs 4,180/ 10 grams from its all-time high levels in the last two weeks while silver prices fell by Rs 8,260/kg in the same period.
On Monday, gold and silver settled on a weaker note in the domestic and international markets. The Gold December futures contract settled at Rs 75,351 per 10 grams, down 2.51%, and the Silver December futures contract settled at Rs 89,182 per kilogram, down 2.29%.
Gold and silver prices crashed vertically after strong gains in the dollar index and Bitcoin. The dollar index crossed the 105 mark and hit 4.5-month highs after Trump’s win in the US Presidential elections.
Today, the US Dollar Index, DXY, was hovering near the 105.58 mark, gaining 0.04 or 0.04%.
Cryptocurrencies are also showing solid rallies aiming for friendly policies in the Trump administration. Bitcoin prices crossed $87000 per coin and pushed gold and silver prices lower. The US equity markets also surged and US 10-year bond yields are sustaining above 4.30% levels and pressurizing gold and silver. “We have already mentioned in yesterday’s note that gold prices below $2,692 and silver prices below $30.80 per troy ounce could show further weakness in the short term,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
“Gold and silver prices are also struggling due to technical sell-off and expectations of a ceasefire in the Middle East and Russia-Ukraine war. However, a dead-cat bound is expected in gold and silver in today’s session. We expect gold and silver prices to remain volatile this week ahead of the US inflation data and volatility in the global financial markets,” Jain added.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 75,040-74,770 and resistance at Rs 75,660-75,850.
- Silver has support at Rs 88,500-87,650 and resistance at Rs 90,000-90,700.
Jain suggests buying gold on dips around Rs 75,200 with a stop loss of Rs 74,950 for the target of Rs 75,700 and also buying silver around Rs 88,800 with a stop loss of Rs 88,100 for the target of Rs 90,000.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)