Gold prices fell Rs 400/10 gm in the last 2 days, while silver fell Rs 1,900 per kilogram.
Gold and silver closed on a slightly weaker note in the international and domestic markets on Friday. The October gold futures contract closed at Rs 71,426 per 10 grams with a loss of 0.68% and the December silver futures contract closed at Rs 82,757 per kilogram with a loss of 2.59%.
Gold and silver showed very high price volatility and plunged last week amid mixed US economic data and ahead of this week’s US CPI inflation data.
US non-farm employment rose to 1,42,000 against the previous months’ revised data of 89,000 and the unemployment rate also declined to 4.2% in August against the previous month’s rate of 4.3%. Crude oil also showed a sharp sell-off amid demand concerns and also pressured precious metals. However, the dollar index and 10-year US bond yields fell last week and supported gold and silver prices at lower levels. Today, the US dollar index, DXY, was hovering around the 101.28 mark, falling 0.10 or 0.10%. “US equity markets also showed a sharp sell-off and supported safe-haven buying at lower levels. “We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in global financial markets and ahead of the US inflation data and are expected to hold their support level of $2,464 and $26.80 per troy ounce respectively on a weekly close,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Manoj Kumar Jain Gold and Silver Ranges:
- On MCX, gold has support at 71,180-70,850 and resistance at 71,770-72,040.
- MCX Silver has support at 82,000-81,100 and resistance at 83,500-84,200.
“We suggest staying away from gold and silver in today’s session due to high volatility in global financial markets,” 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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