In the last week, gold prices have remained stable, gaining Rs 220 per 10 grams, while silver has gained Rs 1,100 per kilogram.
Gold and silver closed on a positive note in the domestic market on Monday and on a slightly positive note in the international markets. The October gold futures contract closed at Rs 72,039 per 10 grams with a gain of 0.37% and the December silver futures contract closed at Rs 88,299 per kilogram with a gain of 0.51%.
Gold and silver showed very high price volatility and fell from their highs amid better-than-expected US durable goods orders data. The dollar index also rebounded from 13-month lows amid rising tensions between Russia and Ukraine and also limited precious metals’ gains.
However, the Federal Reserve Chairman’s comment on interest rates at the annual Jackson Hole Symposium last week supported gold and silver prices. Gold hit new record highs on Monday and silver prices also crossed the $30 per troy ounce levels. Today, the US Dollar Index, DXY, was hovering around the 103.22 mark, down 1.20 or 0.15%. “Hedge funds are also bullish on precious metals and increased their long positions as per the latest CFTC data. ETF buying is also picking up in gold and silver following Fed rate cut chances and price support. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and US Core PCE Price Index data but 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 ResearchRanges for Gold and Silver by Manoj Kumar Jain:
- On MCX, gold has support at 71,820-71,550 and resistance at 72,300-72,580.
- Silver has support at 87,650-87,100 and resistance at 88,950-89,600.
“We suggest buying silver on dips near 87,700 with a stop loss of 87,100 for target of 89,100,” 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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