So far this week, gold prices have gained Rs 460/10 gm, while silver has gained Rs 1,800 per kg.
Gold and silver closed on a positive note in domestic markets on Thursday, but on a mixed note in international markets. The October gold futures contract closed at Rs 71,927 per 10 grams, gaining 0.02%, and the December silver futures contract closed at Rs 84,450 per kilogram, gaining 0.92%.
Gold and silver showed very high price volatility due to the US inflation data. Gold prices fell from their highs after US core CPI inflation rose 0.3% in August against expectations of a 0.2% increase. CPI inflation came in, in line with expectations, at 2.5% year-on-year in August.
The dollar index advanced following higher-than-expected US core CPI data, limiting precious metals’ gains. However, the CPI data was in line with expectations at 2.5% and close to the Fed’s target rate of 2.0%. US crude oil and equity markets have also recovered from their lows and could support precious metal prices.
Today, the US Dollar Index, DXY, remained close to the 101.76 mark, up 0.08 or 0.08%. “The ECB monetary policy meeting is also scheduled for today and possible interest rate cuts by the ECB could also support gold and silver prices. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the ECB monetary policy meetings 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. Range for Gold and Silver by Manoj Kumar Jain:
- On MCX, gold has support at 71,700-71,440 and resistance at 72,200-72,500.
- Silver has support at 83,800-83,100 and resistance at 85,200-86,000.
“We suggest buying gold on dips around 71,650 with a stop loss of 71,400 for target of 72,200,” 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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