So far this week, gold prices have remained stable, up Rs 150 per 10 grams, while silver has declined Rs 700 per kilogram.
Gold and silver closed on a weaker note in the domestic and international markets on Wednesday. The October gold futures contract closed at Rs 71,743 per 10 grams with a loss of 0.53% and the December silver futures contract closed at Rs 86,516 per kilogram with a loss of 2.06%.
Gold and silver rose again amid a rally in the dollar index ahead of the US core PCE price index data and profit-taking in crude oil. The dollar index retested the 101 level and capped gains in precious metals.
Gold and silver prices also plunged amid declining safe haven demand and rising investor risk appetite. Tensions in the Middle East remain high, but Iran has yet to retaliate against Israel. The US is also attempting a ceasefire between Israel and Hamas. Today, the US dollar index, DXY, hovered around the 103.22 mark, falling 1.20 or 0.15%. “However, hopes of a Fed rate cut and upbeat US consumer sentiment are supporting 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 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 71,500-71,220 and resistance at 71,950-72,200.
- Silver has support at 85,800-85,150 and resistance at 87,200-88,000.
“We suggest staying away from gold and silver in today’s session ahead of the preliminary US GDP data due later today,” 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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