In the last week, gold prices have remained stable while silver prices have fallen by Rs 1,000/kg in the same time period.
Gold and silver closed on a positive note in the international and domestic markets on Monday. The October gold futures contract closed at Rs 71,628 per 10 grams with a gain of 0.28% and the December silver futures contract closed at Rs 83,645 per kilogram with a gain of 1.07%.
Gold and silver showed very high price volatility and recovered from their lows amid possibilities of interest rate cuts by the ECB at its policy meeting scheduled for this week.
Gold and silver also gained ground amid the chances that the US Federal Reserve will take a dovish stance on monetary policy at next week’s policy meeting following disappointing US jobs data. US non-farm payrolls reports released on Friday showed slower US job growth and fewer jobs were created in August than expected.
Today, the US Dollar Index, DXY, was hovering around the 103.22 mark, falling by 1.20 or 0.15%. “The US equity markets also recovered from their lows and also supported gold and silver prices. However, the dollar index is showing strength and it could limit the gains of precious metals. 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 closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research. Ranges for Gold and Silver by Manoj Kumar Jain:
- On MCX, gold has support at 71,350-71,100 and resistance at 71,850-72,080.
- Silver has support at 83,000-82,250 and resistance at 84,400-85,100.
“We suggest buying gold on dips around 71,350 with a stop loss of 71,080 for target of 71,850,” 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)
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.