Gold August futures contracts at MCX opened flat on Friday at Rs 67,849 per 10 gram, which is up by merely 0.57% or Rs 387 while silver September futures contracts were trading at Rs 81,380/kg, up by 0.06% or Rs 49.
Gold has declined by Rs 1,100/10 gm in the last 2 days while silver prices have gone down by Rs 3,500/kg in 2 days, ahead of the U.S. Core PCE price index data.
On Thursday, gold and silver settled on a weaker note in the domestic as well as the international markets. Gold August futures contract settled at Rs 67,462 per 10 grams with a loss of 2.16% and silver September futures contract settled at Rs 81,331 per kilogram with a loss of 4.20%.
Gold and silver showed heavy sell-off after the Chinese central bank surprisingly cut its one year lending rate by 20 basis points to 2.30%. The Chinese economy is in steep pressure and its Central bank also stops buying gold for its reserves from the last three months. Chinese demand concerns hit precious metals hard in the international markets.
Today, the US Dollar Index, DXY, was hovering near the 104.32 mark, falling 0.04 or 0.04%.The U.S. second quarter advance GDP numbers released on Thursday was also better than expected as reading came up at 2.8% against expected reading of 2.1% and increased worries that the U.S. Fed could do only two rate cuts instead of market expectations of three rate cuts and also pushed precious metals lower.“Gold prices slipped to 3-week lows and silver prices slipped to 11-weeks lows. We expect gold and silver prices to remain volatile in today’s session ahead of the U.S. core PCE price index data. Gold and silver prices are expected to show some short coverings from lower levels,” 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 67,100-66,600 and resistance at 67,800-68,200
- Silver has support at 80,600-79,800 and resistance at 82,000-82,750.
“We suggest staying away from gold and silver ahead of the U.S. Core PCE price index data,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)