In the last 2 days, gold prices gained Rs 600/10 gm, while silver gained Rs 1,300 per kilogram.
Gold and silver closed on a positive note in the domestic and international markets on Friday. The October gold futures contract closed at Rs 71,777 per 10 grams with a gain of 0.82% and the September silver futures contract closed at Rs 85,211 per kilogram with a gain of 1.76%.
Gold and silver showed solid strength over the past week after the Federal Reserve Chairman gave a signal of rate cuts in his speech at the annual Jackson Hole Symposium on Friday.
“The upside risk to inflation has diminished and risks to the labor market have increased. It is time for policy to tighten. The direction is clear, but the timing and pace of rate cuts will depend on upcoming economic data,” said Jerome Powell, Chairman of the Federal Reserve. Following his comments, the dollar index fell to nine-month lows and 10-year US bond yields also fell below 3.80% and supported gold and silver prices. “The euro and the British pound also gained against the US dollar and also supported the precious metal prices. “We expect gold and silver prices to remain positive this week amid weakness in the dollar index and rate cut hopes from the US Federal Reserve and they could hold their key support level of $2,464 per troy ounce and $28.20 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research. Today, the US dollar index, DXY, was hovering around the 100.68 mark, down 0.04 or 0.04%.
Gold and Silver Trading Ranges According to Manoj Kumar Jain:
- On MCX, gold has support at 71,440-71,200 and resistance at 72,040-72,330.
- Silver has support at 84,650-84,100 and resistance at 85,850-86,400.
“We suggest buying gold on dips around 71,550 with a stop loss of 71,200 for the target of 72,200 and we also suggest buying silver around 84,750 with a stop loss of 84,100 for the target of 86,400,” 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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