Amidst a robust US Dollar weak global trends, gold prices on MCX traded on a lacklustre note on Wednesday. Gold futures on MCX rose Rs 34 or 0.05% to Rs 71,182 per 10 grams while MCX July silver contracts gained Rs 111 or 0.13% to Rs 82,989 per kg.
Gold and silver prices lost momentum and closed on a negative note on Tuesday.
“Analysts are eagerly awaiting further comments from Federal Reserve officials to gain clarity on the potential timeline for interest rate cuts. Meanwhile, investors are closely monitoring developments in the Middle East crisis, as Hamas accepted a Gaza cease-fire plan while Israel continued attacks in Rafah, expressing dissatisfaction with the parameters and pledging to pursue further discussions. Expectations are for gold and silver prices to remain volatile in today’s session,” said Rahul Kalantri, VP Commodities, Mehta Equities.
Spot gold was down 0.1% at $2,311.07 per ounce as of 0235 GMT. U.S. gold futures fell 0.3% to $2,316.60.
Gold prices dipped in international markets as the dollar edged up as market participants assessed the timeline for potential US interest rate cuts and looked out for fresh cues for further clarity on monetary policy.Bullion is used as a hedge against inflation, but higher rates reduce the appeal of holding the non-yielding asset.Today, the US Dollar Index, DXY, was hovering near the 105.54 mark, rising 0.13 or 0.12%.Range for Gold and Silver today by Rahul Kalantari:
- Gold has support at Rs 70,940 and Rs 70,760, with resistance at Rs 71,440 and Rs 71,620.
- For silver, the metal finds support at Rs 82,140-81,580, while resistance is at Rs 83,640 and Rs 84,080
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)