Mirroring a similar sentiment, silver December futures contracts on MCX opened at Rs 1,29,338/kg, sustaining near the peak of Rs 1,29,622, also hit in Monday’s session.
In the international market, gold prices reached a record high on Tuesday, supported by a weaker dollar ahead of the Federal Reserve’s policy meeting this week, where the central bank is widely expected to cut interest rates.
Spot gold rose 0.1% to $3,680.17 per ounce as of 0109 GMT, after hitting a record high of $3,689.27 earlier in the session.
On Tuesday, gold and silver settled on a positive note in the domestic market and international markets. Gold October futures contract settled at Rs 1,10,179 per 10 grams with a gain of 0.74% and silver December futures contract settled at Rs 1,29,429 per kilogram with a gain of 0.46%.
Gold and silver extended their gains amid weakness in the dollar index and aggressive rate cut hopes from the U.S. Fed after disappointing U.S. economic data. Gold prices crossed $3,700 per troy ounce and hit a record high once again and silver prices also hit a fresh 14-year high in the international markets.“Both precious metals are trading at an all-time high in the domestic markets. Safe-haven buying, geopolitical tensions and upbeat investment demand continue to support gold and silver prices,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.“After crossing a $3,700 barrier, gold is poised to test $3,800 per troy ounce levels soon and silver is also heading for $44.50 per troy ounce levels,” he added.
Further, recent tensions in the Middle East and escalation in the Russia-Ukraine war is also fueling precious metals prices.
Today, the US Dollar Index, DXY, was hovering near the 97.24 mark, falling 0.06 or 0.06%.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geopolitical tensions and FOMC meetings. Gold is expected to trade in the range of $3,534-3,800 per troy ounce and silver is expected to trade in the range of $41.40-44.50 per troy ounce this week,” Jain added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,09,850-1,09,500 and resistance at Rs 1,10,580-1,11,000
- Silver has support at Rs 1,28,500-1,27,700 and resistance at Rs 1,30,300-1,31,500
Jain suggests buying gold around Rs 1,09,800 with a stop loss of Rs 1,09,380 for a target of Rs 1,10,650 and also suggests buying silver around Rs 1,28,800 with a stop loss of Rs 1,27,700 for a target of Rs 1,30,300-1,31,500
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,208/8 grams while pure gold (24 carat) prices stand at Rs 61,032/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,376/8 grams while pure gold (24 carat) prices stand at Rs 61,136/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 57,064/8 grams while pure gold (24 carat) prices stand at Rs 60,792/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,240/8 grams while pure gold (24 carat) prices stand at Rs 60,992/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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