Gold October futures contracts at MCX opened flat on Wednesday at Rs 72,040 per 10 gram, which is down by 0.11% or Rs 82 while silver September futures contracts were trading at Rs 85,330/kg, down by 0.38% or Rs 328.
In this week, the prices of gold have gained Rs 300/10 gm while silver has remained flat, gaining merely about Rs 100/kg.
On Tuesday, gold and silver settled slightly positive in the domestic market while settling on a mixed note in the international markets. Gold October futures contract settled at Rs 72,122 per 10 grams with a gain of 0.12% and silver December futures contract settled at Rs 88,338 per kilogram with a gain of 0.04%.
Gold and silver showed very high price volatility and settled on a mixed note ahead of the U.S. core PCE price index data later this week. The U.S. consumer confidence data released on Tuesday was better than expected and supported gold and silver prices.
The dollar index also plunged again amid downbeat U.S. manufacturing activities and also supported gold and silver prices.Today, the US Dollar Index, DXY, was hovering near the 100.72 mark, rising 0.17 or 0.17%.“As per the news reports Chinese gold demand is also expected to revive in the upcoming months and could also support prices of precious metals. We expect gold and silver prices to remain volatile in this week amid volatility in the dollar index and ahead of the U.S. core PCE price index data but it could hold its key support level of $2,464 per troy ounce and $28.50 per troy ounce respectively on a weekly closing basis,” 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 71,900-71,660 and resistance at 72,330-72,580
- Silver has support at 87,700-87,100 and resistance at 88,850-89,500.
“We suggest buying silver on dips around 87,800 with a stop loss of 87,150 for the target of 89,500,” 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)