So far this week, gold prices have remained stable, falling by just Rs 127, while silver has fallen by nearly Rs 1,500 per kilogram.
Gold and silver closed on a positive note in both the international and domestic markets on Wednesday. The October gold futures contract closed at Rs 71,466 per 10 grams with a gain of 0.12% and the December silver futures contract closed at Rs 83,565 per kilogram with a gain of 0.38%.
Gold and silver showed very high price volatility and extended their decline in the early trading session but recovered from their lows after the downbeat job openings data from the US JOLTS survey. The US Employment and Labor Turnover Survey (JOLTS) showed that July job openings declined to the lowest level since January 2021.
A decline in new job openings pushed the dollar index and 10-year US bond yields lower and supported gold and silver prices. Gold and silver prices also rose amid short-covering and bargain buying at lower levels ahead of the US jobs data. “The non-inverted US yield curve also shows that the US economy is healthier and avoiding recession and supports 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 jobs data, but they could hold their key support level of $2,464 and $27.80 per troy ounce respectively,” said Manoj Kumar Jain of Prithvifinmart Commodity Research. Today, the US dollar index, DXY, was hovering around the 101.33 mark, dipping 0.03 or 0.02%.
Manoj Kumar Jain Gold and Silver Range:
- On MCX, gold has support at 71,220-70,950 and resistance at 71,660-71,880.
- Silver has support at 83,100-82,550 and resistance at 84,200-84,850.
“We suggest buying silver on dips around 83150 with a stop loss of 82600 for target of 84200,” 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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