Post the US Fed hinted to cut rates in September, Gold October future contracts at MCX opened on Wednesday at Rs 70,005 per 10 grams, which is up by 0.5% or Rs 350 while silver September futures contracts were trading at Rs 83,967/kg, up by 0.44% or Rs 371.
Gold prices have increased by Rs 1,400 per 10 grams this week, while silver is up by Rs 2,500/kg in the same period.
On Wednesday, gold and silver settled on a positive note in the domestic and international markets. Gold October futures contract settled at Rs 69,655 per 10 grams with a gain of 0.69% and silver September futures contract settled at Rs 83,596 per kilogram with a gain of 1.13%.
Gold and silver prices gained in the international markets after the U.S. Fed left interest rates unchanged but gave a signal for a rate cut in the September policy meeting and also amid the strength in the Japanese Yen after the Bank of Japan increased policy rates by 15 basis points to 0.25% and escalating tensions in the middle-east after a strike on the Hamas chief in Iran.
The U.S. Fed Chairman said that we are gaining confidence as inflation is easing and other economic data readings are also as per the Fed expectations. His comments on the policy rate cuts boosted market sentiments and also pushed the dollar index lower and supported precious metals.Today, the US Dollar Index, DXY, was hovering near the 105.95 mark, falling 0.11 or 0.10%.“We expect gold and silver prices to remain volatile this week ahead of the U.S. job data,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Ranges for gold and silver by Manoj Kumar Jain
- At mcx, gold is having support at 69,400-69,180 and resistance at 69,950-70,220
- Silver has a support at 82,800-82,220 and resistance at 84,200-85,000
“We suggest buying gold above 69,700 with a stop loss of 69,440 for the target of 70,200 and also suggest buying silver above 83,800 with a stop loss of 83,150 for the target of 85,000,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)