On the day of the Union Budget, Gold August futures at MCX opened flat at Rs 72,838 per 10 gram, rising by 0.17% or Rs 120, while the silver September futures at MCX opened 0.21% or Rs 191 lower at Rs 89,012/kg.
Gold prices have fallen by Rs 1,500/10gm in the last one week whereas silver prices have witnessed a fall of Rs 4,600/kg in the same duration.
On Monday, gold and silver settled on a weaker note in the domestic market, despite a weakness in the rupee, as well as the international markets. Gold August futures contract settled at Rs 72,718 per 10 grams with a loss of 0.37% and silver September futures contract settled at Rs 89,203 per kilogram with a loss of 0.49%.
Gold and silver extended its fall in a volatile session. Prices gained in the early trading session after the Chinese rate cut decision but were unable to hold early session gains amid steady dollar index and political uncertainty in the U.S. after withdrawal of the Presidential bid by Joe Biden.
Today, the US Dollar Index, DXY, was hovering near the 104.27 mark, falling 0.05 or 0.05%.“Traders are also cautious ahead of the key U.S. economic data scheduled this week. The U.S. second quarter GDP data and core PCE price index data will be key data before the next week’s U.S. Fed monetary policy meetings. The U.S. Fed could keep interest rates unchanged in the July policy meetings but very high probability for a rate cut in the September policy meetings. We expect gold and silver prices to remain volatile this week ahead of the U.S. core PCE price index data and the second quarter GDP data,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Ranges for gold and silver by Manoj Kumar Jain:
- At mcx, gold is having support at 72,500-72,220 and resistance at 72,950-73,200.
- Silver has support at 88,650-88,100 and resistance at 89,800-90,500.
“We suggest staying away from gold and silver in today’s session ahead of the Indian Union Budget amid expected change in the duty structure of gold and silver,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)