Gold February futures contracts at MCX opened slightly higher on Monday at Rs 76,727 per 10 gram, which is up by 0.24% or Rs 183 while silver March futures contracts were trading at Rs 88,967/kg, up by 0.09% or Rs 80.
Gold prices fell by Rs 400/10 grams in the month of December so far while silver prices fell by Rs 2,250/kg in the same period.
On Friday, gold and silver settled on a weaker note in the domestic and international markets. Gold February futures contract settled at Rs 76,544 per 10 grams with a loss of 0.37% and silver March futures contract settled at Rs 88,887 per kilogram with a loss of 0.84%.
Gold and silver showed very high price volatility and extended its gain in the early trading session on Friday but were unable to hold its gains amid steady dollar index and the US 10-year bond yields.
The dollar index is trading near 2-year highs and the US 10-year bond yields are also trading above 4.60% levels and restricting gains of precious metals.
Today, the US Dollar Index, DXY, was hovering near the 108.01 mark, gaining 0.01 or 0.01%.The Bank of Japan’s signal for interest rate hikes and weakening emerging market currencies are pressuring gold and silver. However, geopolitical tensions and Chinese stimulus hopes early next year are supporting gold and silver prices at lower levels.“Gold and silver are trading near its make or break level of $2,588 and $29.88 per troy ounce and if it is held then smart recovery is possible in the upcoming sessions. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and volatility in the global financial markets,” said Manoj Kumar Jain of Prithvi finmart Commodity Research.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 76,280-76,040 and resistance at Rs 76,800-77,080.
- Silver has support at Rs 88,150-87,500 and resistance at Rs 89,500-90,200.
Jain suggests buying gold on dips around Rs 76,220 with a stop loss of Rs 75,950 for a target of Rs 76,800.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)