Forex Trading, News, Systems and More

Gold Price Today: Yellow metal falls by Rs 700/10 gm in 4 days, silver tumbles by Rs 3,900/kg

Ahead of the key US economic data and weakness in crude oil, Gold October futures contracts at MCX opened flat on Wednesday with a positive bias at Rs 71,449 per 10 gram, which is up by 0.1% or Rs 68 while silver December futures contracts were trading at Rs 83,183/kg, down by 0.08% or Rs 69.

In the last 4 days, the prices of gold have fallen by Rs 700/10 gm while silver has dipped by nearly Rs 3,900 per kilogram.

On Wednesday, gold and silver settled on a weaker note in the international as well as the domestic markets. Gold October futures contract settled at Rs 71,381 per 10 grams with a loss of 0.31% and silver December futures contract settled at Rs 83,252 per kilogram with a loss of 1.54%.

Gold and silver extended its fall ahead of the key U.S. economic data and weakness in crude oil. The U.S. JOLTS job opening and employment data are due later this week and market participants are booking profits in their long positions.

Crude oil prices slipped to 9-month lows amid news of resumption in Libyan oil production and also pushed precious metals lower. The Bank of Japan Governor said to further hike interest rates if required, after his statement global equity markets showed sell-off and also pressurized gold and silver prices due to Yen carry trade effects.Today, the US Dollar Index, DXY, was hovering near the 101.66 mark, falling 0.16 or 0.17%.“The Chinese manufacturing activity data contracted once again in the last month and demand worries from China also pushed precious metals lower. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the U.S. job data 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 by Manoj Kumar Jain:

  • At MCX, gold is having support at 71,200-70,950 and resistance at 71,600-71,820.
  • Silver has support at 82,700-82,000 and resistance at 83,850-84,400.

“We suggest selling gold on a rise around 71,600 with a stop loss of 71,820 for the target of 71,100,” 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)