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On Wednesday, gold and silver settled on a positive note in the domestic and international markets. Gold December futures contract settled at Rs 76,664 per 10 grams with a gain of 0.40% and silver December futures contract settled at Rs 92,183 per kilogram with a gain of 0.61%.
Gold and silver extended its gains amid heightened tensions in the middle-east and interest rate cut expectations from the ECB. Israel’s aggression over Hezbollah and possibilities of strike on Iran is supporting safe-haven buying of precious metals.
The ECB monetary policy meeting is also scheduled on Thursday and the market is expecting 25 basis points interest rate cuts from the ECB and also supporting prices of both precious metals.
Today, the US Dollar Index, DXY, was hovering near the 103.57 mark, falling 0.01 or 0.01%.
“Gold prices nearly tested its previous high in the international markets on Wednesday and it hit a record high in the domestic markets. Silver is also following gold and showing strength,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.“However, strength in the dollar index is limiting gains. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geo-political tensions and ahead of the key U.S. data but gold and silver could hold $2,600 and $30.00 per troy ounce levels respectively,” Jain added.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 76,400-76,140 and resistance at Rs 76,850-77,100.
- Silver has support at Rs 91,650-91,000 and resistance at Rs 92,850-93,500.
“We suggest buying gold on dips around 76,500 with a stop loss of 76,240 for the target of 77,000 and also suggest buying silver around 91,650 with a stop loss of 91,000 for the target of 93,000,” Jain further stated.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
