Gold February futures contracts at MCX opened flat on Friday at Rs 78,114 per 10 gram, which is up by 0.19% or Rs 145 while silver March futures contracts were trading at Rs 92,304/kg, down by 0.36% or Rs 329.
Gold prices fell by Rs 888/ 10 grams in the last 2 days while silver prices fell by Rs 3,500/kg in the same period.
On Thursday, gold and silver settled on a weaker note in the domestic and international markets. Gold February futures contract settled at Rs 77,969 per 10 grams with a loss of 1.31% and silver March futures contract settled at Rs 92,633 per kilogram with a loss of 3.31%.
Gold and silver crashed vertically after hotter than expected US PPI data and a surge in the dollar index. The U.S. PPI came up at 0.4% in November month just double from the expectations of 0.2% and the annual PPI reading came at 3.0% which is very high from the FED’s target rate of 2.0%.
Core PPI came inline expectations at 0.2%. Hotter than expected PPI data increased worries about FED rate cuts and triggered selling in precious metals. The dollar index gained after hotter than expected PPI data and also pushed gold and silver prices lower.
Today, the US Dollar Index, DXY, was hovering near the 107.09 mark, gaining 0.14 or 0.13%.However, jobless claims surged last week to 2,42,000 and could support prices of precious metals.“We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index, geo-political tensions and volatility in the global markets but it could hold its key support levels of $2,588 and $29.88 per troy ounce levels respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 77,700-77,330 and resistance at Rs 78,200-78,500.
- Silver has support at Rs 91,800-91,100 and resistance at Rs 93,300-94,200.
Jain suggests day traders should stay away from precious metals in today’s session but long term investors can accumulate at lower levels.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,264/8 grams while pure gold (24 carat) prices stand at Rs 61,072/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,280/8 grams while pure gold (24 carat) prices stand at Rs 61,104/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,616/8 grams while pure gold (24 carat) prices stand at Rs 60,392/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,776/8 grams while pure gold (24 carat) prices stand at Rs 60,552/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)