Gold prices have increased by Rs 800/10 gram in the last week, while silver increased by Rs 2,000/kg.
On Monday, gold and silver closed on a weaker note in domestic and international markets. The December gold futures contract settled at Rs 76,046 per 10 grams with a loss of 0.34% and the December silver futures contract settled at Rs 90,736 per kilogram with a loss of 1.04%.
Gold and silver failed to maintain their gains from last week and showed profit taking amid the strength of the dollar index and bearish Chinese economic data. The dollar index extended its gains and hit nine-week highs; US 10-year bond yields also remain above 4.0% levels and pushed down gold and silver prices.
Chinese economic data released on Monday and over the weekend were below market expectations and a bit bearish for precious metals from a demand perspective. The Chinese Finance Minister commented on economic stimulus on Saturday but without specific announcements the market took it as a negative.
Today, the US Dollar Index, DXY, was hovering around the 103.24 mark, falling 0.06 or 0.06%. “Crude oil prices also fell after lower demand projections from OPEC+ and US stock markets rose. Risk aversion in the market is also a reason for profit taking in precious metals,” said Manoj Kumar Jain of Prithvifinmart Commodity Research. “We expect gold and silver prices to remain volatile this week amid the volatility of the dollar index and geopolitical tensions and Gold and silver could maintain levels of 2,600 and 30 dollars per troy ounce respectively,” Jain added.
Manoj Kumar Jain’s gold and silver ranges:
- On mcx, gold has support at Rs 75,800-75,550 and resistance at Rs 76,300-76,620.
- Silver has support at Rs 90,000 to Rs 89,350 and resistance at Rs 91,400 to Rs 92,200.
“We suggest buying gold on dips around 75800 with a stop loss of 75550 for the target of 76330,” Jain said.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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