Gold October futures contracts at MCX opened flat on Thursday at Rs 71,890 per 10 gram, which is down by 0.05% or Rs 37 while silver December futures contracts were trading at Rs 84,569/kg, up by 0.14% or Rs 119.
In this week so far, the prices of gold have gained Rs 460/10 gm while silver has gained Rs 1,800 per kilogram.
On Thursday, gold and silver settled on a positive note in the domestic markets but on a mixed note in the international markets. Gold October futures contract settled at Rs 71,927 per 10 grams with a gain of 0.02% and silver December futures contract settled at Rs 84,450 per kilogram with a gain of 0.92%.
Gold and silver showed very high price volatility due to US inflation data. Gold prices slipped from their highs after the U.S. core CPI inflation grew 0.3% in August against expectation of a rise of 0.2%. The CPI inflation came as per expectation at 2.5% on yearly basis in August.
The dollar index gained after higher than expected US core CPI data and limits gains of precious metals. However, the CPI data was inline expectations at 2.5% and moving towards the Fed target rate of 2.0%. Crude oil and the US equity markets have also recovered from their lows and could support prices of precious metals.
Today, the US Dollar Index, DXY, was hovering near the 101.76 mark, rising 0.08 or 0.08%.“The ECB monetary policy meeting is also scheduled today and possible interest rate cuts by the ECB could also support prices of gold and silver. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the ECB monetary policy meetings and expected to hold its support level of $2,464 and $26.80 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Range for gold and silver by Manoj Kumar Jain:
- At MCX, gold is having support at 71,700-71,440 and resistance at 72,200-72,500.
- Silver has support at 83,800-83,100 and resistance at 85,200-86,000.
“We suggest buying gold on dips around 71,650 with a stop loss of 71,400 for the target of 72,200,” 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)