Gold December futures contracts at MCX opened flat today at Rs 75,942 per 10 gram, which is up by 0.3% or Rs 224 while silver December futures contracts were trading at Rs 91,569/kg, up by 0.19% or Rs 171.
On Friday, gold and silver settled on a weaker note in the domestic as well as the international markets. Gold December futures contract settled at Rs 75,718 per 10 grams with a loss of 0.70% and silver December futures contract settled at Rs 91,398 per kilogram with a loss of 1.37%.
Gold and silver gained third straight week in the international markets after hefty rate cuts by the U.S. Fed in its September policy meetings and weakness in the dollar index but gold and silver slipped from their record highs due to profit taking at higher levels.
Gold prices hit record highs in the international markets and inching closer to $2,700 per troy ounce levels. Silver prices also hit 11-year highs last week. The dollar index also slipped to 14-month lows and supported gold and silver prices.
Today, the US Dollar Index, DXY, was hovering near the 100.46 mark, gaining 0.08 or 0.08%.
“Gold and silver are showing solid strength in interest rate cuts by global central banks, Chinese stimulus and geo-political tensions. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and Fed Chairman’s speech and it is expected to hold its support level of $2,600 and $30.40 per troy ounce respectively on a weekly closing basis” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.“Any correction due to profit taking in gold and silver could be a buying opportunity at lower levels” Jain added.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold is having support at Rs 75,440-75,200 and resistance at Rs 76,000-76,330.
- Silver MCX has support at Rs 90,650-90,000 and resistance at Rs 92,100-92,750.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)