In the last 5 days, gold prices have gained Rs 1,500/10 gm, while silver has gained Rs 4,745 per kilogram.
Due to the weak rupee, domestic markets closed on a slightly positive note on Wednesday. However, precious metals closed on a mixed note in international markets. The gold futures contract for October closed at Rs 71,830 per 10 grams with a gain of 0.07% and the silver futures contract for September closed at Rs 84,863 per kilogram with a gain of 0.16%.
Gold and silver traded flat and mixed as most Federal Reserve members agreed to cut interest rates at upcoming policy meetings. Minutes from the FOMC meeting indicated that recent progress on inflation and rising unemployment is providing scope for 25 basis point rate cuts at upcoming policy meetings.
Market sentiments are already showing a 100% probability of a 25 basis point cut in the upcoming monetary policy meetings. The dollar index is trading at seven-and-a-half-month lows and supporting precious metal prices. “Following the FOMC meeting minutes, gold and silver prices moved away from the intra-day low and are maintaining the bullish momentum in precious metals. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and the speech by the US Federal Reserve Chairman at the annual Jackson Hole Symposium, but they could hold their key support level of $2,464 per troy ounce and $27.80 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research. Today, the US Dollar Index, DXY, was hovering around the 101.22 mark, down 0.18 or 0.18%. Ranges for Gold and Silver by Manoj Kumar Jain:
- On MCX, gold has support at 71,600-71,330 and resistance at 72,040-72,270
- Silver has support at 84,200-83,550 and resistance at 85,500-86,150.
“We suggest buying gold on dips around 71,600 with a stop loss of 71,330 for the target of 72,100 and we also suggest buying silver around 84,100 with a stop loss of 83,450 for the target of 85,500,” Jain added.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of the Economic Times)
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