Amid high volatility, Gold April futures contracts at MCX opened higher on Thursday at Rs 85,830 per 10 gram, hovering near its higher levels. The yellow metal was up by 0.41% or Rs 349 in early trade.
Silver March futures contracts, meanwhile, opened flat at Rs 95,580/kg, marginally up by 0.08% or Rs 78.
On Wednesday, gold and silver settled on a mixed note in the domestic and international markets. Gold April futures contract settled at Rs 85,481 per 10 grams with a loss of 0.05% while silver March futures contract settled at Rs 95,502 per kilogram with a gain of 0.99%.
Gold and silver showed very high volatility and early losses. The US CPI came hotter than expected and came up at 0.5% in January month against expectations of 0.3% and yearly CPI also rose to 3.0%.
The US core CPI also jumped by 0.4% in January month against expected increase of 0.3%. Strong safe-haven demand for precious metals digested hotter than expected CPI data.
“Gold and silver also recovered after the US President advocated for lower interest rates. However, the Fed Chairman said to maintain the status quo on interest rates due to higher inflation,” noted Manoj Kumar Jain of Prithvi finmart Commodity Research.The dollar index and the US bond yields also rallied after CPI data and could limit gains, he added.Today, the US Dollar Index, DXY, was hovering near the 107.74 mark, falling 0.19 or 0.18%.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and the US PPI data and the US trade war,” Jain added.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 85,000-84,450 and resistance at Rs 85,820-86,300
- Silver has support at Rs 94,750-94,000 and resistance at Rs 96,200-97,000.
Jain suggests buying silver on dips around Rs 94,800 with a stop loss of Rs 94,100 for a target of Rs 96,200.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,480/8 grams while pure gold (24 carat) prices stand at Rs 62,408/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 56,704/8 grams while pure gold (24 carat) prices stand at Rs 60,464/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,712/8 grams while pure gold (24 carat) prices stand at Rs 60,488/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,912/8 grams while pure gold (24 carat) prices stand at Rs 60,688/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)