Gold October futures contracts at MCX opened flat on Wednesday at Rs 68,752 per 10 gram, which is down by 0.31% or Rs 213 while silver September futures contracts were trading at Rs 79,433/kg, down by 0.24% or Rs 190.
In this week so far, the prices of gold have fallen by Rs 1,000/10 gm while silver prices have gone down by nearly Rs 3,060 per kilogram.
On Tuesday, gold and silver settled on a mixed note in the domestic as well as the international markets. Gold October futures contract settled at Rs 68,965 per 10 grams with a loss of 0.50% while silver September futures contract settled at Rs 79,623 per kilogram with a gain of 0.03%.
Gold and silver showed very high price volatility and were settled on a mixed note. Gold extended its fall amid rebound in the dollar index and the U.S. bond yields. The Japanese yen slipped from their highs amid recovery in the Japanese equity markets and supported the dollar index and other global currencies.
Recovery in the dollar index pushed gold prices lower. However, silver prices recovered from their lows amid recovery in the industrial metals after better than expected German factory orders data. Silver prices were also recovered amid short coverings and bargain buying at lower levels.Today, the US Dollar Index, DXY, was hovering near the 103.26 mark, falling 0.29 or 0.28%.“Volatility and gold and silver will intensify further due to very high speculation on the Fed rate cuts in the September policy meetings. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geo-political tensions,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold is having support at 68,700-68,440 and resistance at 69,200-69,500.
- Silver has support at 79,000-78,300 and resistance at 80,350-81,000.
“We suggest selling silver on rise around 80,200 with a stop loss of 80,850 for the target of 78,800,” Jain added.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)