Gold prices have risen by Rs 2,200/10 gm in the month of August so far, while silver has gained Rs 1,100 per kilogram.
Gold and silver closed on a positive note in both domestic and international markets on Tuesday. The October gold futures contract closed at Rs 71,777 per 10 grams with a gain of 0.27% and the September silver futures contract closed at Rs 84,730 per kilogram with a gain of 0.46%.
Gold and silver showed very high price volatility and extended their gains. Gold prices hit a new all-time high as the December futures contract touched $2,570 per troy ounce and silver also hit four-week highs amid a weak dollar index and solid Chinese demand.
The dollar index fell to seven-and-a-half-month lows and supported precious metals. The People’s Bank of China kept its 1-year and 5-year lending prime rates unchanged on Tuesday. The weakness in the dollar index and the crisis in the Chinese property sector make gold and silver the preferred investment options for investors. Today, the US dollar index, DXY, hovered around the 101.41 mark, falling 0.03 or 0.03%. “Robust Chinese demand for gold is also supporting precious metal prices. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and the US Federal Reserve Chairman’s speech at the annual Jackson Hole Symposium, but could hold its 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. Ranges for Gold and Silver on MCX:
- On MCX, gold has support at 71,440-71,220 and resistance at 72,000-72,270
- Silver has support at 84,100-83,550 and resistance at 85,400-86,100
“We suggest waiting for some corrective declines to initiate fresh long positions in gold and silver ahead of the FOMC meeting minutes; however, the overall long-term trend is bullish for gold and silver,” 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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