Gold and silver closed on a weaker note in the domestic and international markets on Friday. The October gold futures contract closed at Rs 71,611 per 10 grams with a loss of 0.80% and the December silver futures contract closed at Rs 85,210 per kilogram with a loss of 2.11%.
Gold and silver showed some profit-taking from their highs after US data suggested less aggressive chances of rate cuts by the Federal Reserve. US second-quarter GDP was revised up from 2.8% to 3.0% and consumer spending also rose by 0.5%.
Core PCE price index data also came in line with expectations and supported the dollar index and 10-year US bond yields. The dollar index rebounded from 13-month lows and crossed the 101 mark once again and limited gains for precious metals.
Today, the US Dollar Index, DXY, was hovering around the 101.69 mark, falling by 0.01 or 0.01%. “Gold prices fell from record highs and silver prices are also unable to sustain above $30 per troy ounce levels. However, geopolitical tensions and record investment demands 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 employment data, but they might 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. Ranges for Gold and Silver by Manoj Kumar Jain:
- On MCX, gold has support at 71,400-71,180 and resistance at 71,850-72,040.
- Silver has support at 84,450-83,700 and resistance at 85,800-86,350.
“We suggest buying gold on dips around 71,350 with a stop loss of 71,100 for target of 72,000,” 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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