Gold August futures along with silver September futures contracts opened flat on Thursday as the former opened up by 0.4% or Rs 298 at Rs 74,435 per 10 gram while the latter opened up by 0.48% or Rs 438 at Rs 92,380 per kilogram.
The yellow metal has gained Rs 1,200/10 gm in the current week after slipping slightly from its all time high Rs 74,731 while silver has surged by Rs 700/kg in the same time period.
Gold prices hit life-time high on Wednesday before profit taking as gold and silver settled on a weaker note in the international and domestic markets. Gold August futures contract settled at Rs 74,137 per 10 grams with a loss of 0.18% and silver September futures contract settled at Rs 91,942 per kilogram with a loss of 2.04%.
Gold and silver showed very high price volatility before the metals slipped from their highs. Gold prices hit life-time highs on Wednesday before showing profit taking. Silver extended its fall due to fresh curbs on Chinese export by the United States. Pressure on industrial metal prices is pushing silver prices lower.
However, an increased probability of the Fed rate cuts in the September policy meetings and weakness in the dollar index are supporting precious metal prices. The CME’s Fed watch tool is showing 98.1% probability of rate cuts in the September policy meetings.Today, the US Dollar Index, DXY, was hovering near the 103.78 mark, rising 0.03 or 0.03%.“The dollar index slipped to 4-month lows and the U.S. 10-year bond yields also slipped to 4-month lows and supported gold and silver prices. We expect gold and silver prices to remain volatile this week ahead of the ECB policy meetings,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Ranges for gold and silver for today:
- At mcx, gold is having support at 73,900-73,660 and resistance at 74,400-74,720
- Silver has support at 91,400-90,750 and resistance at 92,650-93,300.
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