Gold Price Today: Yellow metal up by Rs 2,200/10 gm in August, silver gains Rs 1,300/kg

Amid the weakness in the dollar index and robust Chinese demand, gold October futures contracts at MCX opened flat on Wednesday at Rs 71,862 per 10 gram, which is up by 0.12% or Rs 85 while silver September futures contracts were trading at Rs 84,892/kg, up by 0.19% or Rs 162.

Gold prices have surged by Rs 2,200/10 gm in the month of August so far while silver has gained Rs 1,100 per kilogram.

On Tuesday, gold and silver settled on a positive note in the domestic as well as the international markets. Gold October futures contract settled at Rs 71,777 per 10 grams with a gain of 0.27% and silver September futures contract settled at Rs 84,730 per kilogram with a gain of 0.46%.

Gold and silver showed very high price volatility and extended its gains. Gold prices hit fresh all time high as the December futures contract hit $2570 per troy ounce and silver also hit 4-week highs amid weakness in the dollar index and robust Chinese demand.

The dollar index slipped to 7-1/2 month lows and supported precious metals. The People’s Bank of China holds its 1-year and 5-year prime loan rates unchanged on Tuesday. Weakness in the dollar index and crisis in the Chinese real estate sector makes gold and silver as preferred investment options for investors.Today, the US Dollar Index, DXY, was hovering near the 101.41 mark, falling 0.03 or 0.03%.“Robust Chinese demand for gold is also supporting prices of precious metals. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and the U.S. Fed Chairman’s speech in the annual Jackson Hole Symposium but it could hold its key support level of $2,464 per troy ounce and $27.80 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Ranges for gold and silver on MCX:

• At MCX, gold is having support at 71,440-71,220 and resistance at 72,000-72,270
• Silver has support at 84,100-83,550 and resistance at 85,400-86,100

“We suggest waiting for some corrective dips for initiating fresh long positions in the gold and silver ahead of the FOMC meeting minutes; however the overall long-term trend is bullish for gold and silver,” 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)