This week, gold prices gained Rs 300/10 gm, while silver remained stable, gaining just around Rs 100/kg.
Gold and silver closed slightly positive in the domestic market on Tuesday, while they closed mixed in international markets. The October gold futures contract closed at Rs 72,122 per 10 grams, up 0.12%, and the December silver futures contract closed at Rs 88,338 per kilogram, up 0.04%.
Gold and silver showed very high price volatility and closed on a mixed note ahead of the US Core PCE Price Index data due later this week. US consumer confidence data released on Tuesday was better than expected and supported gold and silver prices.
The dollar index also fell again amid downbeat US manufacturing activities and also supported gold and silver prices. Today, the US Dollar Index, DXY, was hovering around the 100.72 mark, up 0.17 or 0.17%. “As per news reports, Chinese demand for gold is also expected to pick up in the coming months and it could also support precious metal prices. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the US Core PCE Price Index data, but it could hold its key support level of $2,464 per troy ounce and $28.50 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 71,900-71,660 and resistance at 72,330-72,580
- Silver has support at 87,700-87,100 and resistance at 88,850-89,500.
“We suggest buying silver on dips near 87,800 with a stop loss of 87,150 for target of 89,500,” 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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