Bullion remains under pressure as gold February futures contracts at MCX extended losses on Wednesday, opening flat at Rs 76,852 per 10 gram, which is down by 0.02% or Rs 19 while silver March futures contracts were trading at Rs 90,700/kg, down by 0.19% or Rs 175.
Gold prices have fallen by Rs 300/10 grams in this week so far while silver prices have also fallen by Rs 300/kg in the same period.
On Tuesday, gold and silver settled on a weaker note in the domestic and international markets. Gold February futures contract settled at Rs 76,871 per 10 grams with a loss of 0.25% and silver March futures contract settled at Rs 90,875 per kilogram with a loss of 0.34%.
Gold and silver extend its fall on Tuesday after better than expected US retail sales data. The US retail sales grew 0.7% month on month basis and beats the expectations of an increase of 0.5% and limits gains of precious metals.
The market participants are also worried about FED guidance for the 2025 rate cuts amid weak U.S. job markets, increasing inflation and strong services activities.
Gold and silver also showed weakness amid strong gains in cryptocurrencies.The dollar index and the US bond yields traded steady ahead of the FED monetary policy meetings. The Bitcoin hit $1,08,000 per coin for the first time and pressurizing other asset classes. Today, the US Dollar Index, DXY, was hovering near the 106.92 mark, falling 0.04 or 0.04%.
“However, the FED rate cut expectations, geo-political tensions and weakness in the global equity markets supported gold and silver prices at lower levels. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and FOMC meetings 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 76,480-76,200 and resistance at Rs 77,200-77,550.
- Silver has support at Rs 90,100-89,500 and resistance at Rs 91,650-92,400.
Jain suggests buying gold on dips around Rs 76,500 with a stop loss of Rs 76,200 for the target of Rs 77,200.
- Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,192/8 grams while pure gold (24 carat) prices stand at Rs 62,120/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,504/8 grams while pure gold (24 carat) prices stand at Rs 61,368/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,704/8 grams while pure gold (24 carat) prices stand at Rs 60,408/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,104/8 grams while pure gold (24 carat) prices stand at Rs 60,896/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)