After witnessing some profit booking in the previous trading session on hawkish FOMC meeting minutes, Gold April futures contracts opened higher at MCX on Thursday at Rs 86,487 per 10 grams, up by 0.67% or Rs 577, while silver March futures contracts were trading at Rs 96,903/kg, up by 0.52% or Rs 497.
On Wednesday, gold and silver settled on a weaker note in the domestic and international markets. Gold April futures contract settled at Rs 85,910 per 10 grams with a loss of 0.24% and silver March futures contract settled at Rs 96,406 per kilogram with a loss of 0.46%.
Gold and silver showed mild profit-taking amid hawkish comments on the Federal fund rates in the January monetary policy meeting minutes released on Wednesday. The U.S. Fed said that the inflation reading is higher and will watch out for more economic data before the next easing.
“The dollar index and the U.S. bond yields gained after FOMC minutes and pushed gold and silver prices lower. However, safe-haven buying due to U.S. tariff uncertainty is supporting prices of gold and silver,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
On Thursday, the US Dollar Index, DXY, was hovering near the 107.07 mark, falling 0.11 or 0.10%.
“Precious metal prices also find lower level supports after downbeat U.S. housing data. Investors’ demand is also increasing in gold ETF and could also support prices of precious metals. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, the US trade war and ahead of the U.S. jobless claims data,” Jain added.
Ranges for gold and silver by Manoj Kumar Jain:
- On MCX, gold has support at Rs 85,550-85,200 and resistance at Rs 86,360-86,650.
- Silver has support at Rs 95,800-95,150 and resistance at Rs 97,200-98,000.
Jain suggests buying gold around Rs 85,650 with a stop loss of Rs 85,330 for a target of Rs 86,350 and also buying silver around Rs 96,200 with a stop loss of Rs 95,550 for a target of Rs 97,500.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,272/8 grams while pure gold (24 carat) prices stand at Rs 62,160/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,272/8 grams while pure gold (24 carat) prices stand at Rs 61,016/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,968/8 grams while pure gold (24 carat) prices stand at Rs 60,760/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,088/8 grams while pure gold (24 carat) prices stand at Rs 60,848/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)