Gold Price Today: Gold dips by Rs 500/10 gm in a week, silver remains flat

Gold December futures contracts at MCX opened flat today at Rs 75,885 per 10 gram, which is down by 0.21% or Rs 160 while silver December futures contracts were trading at Rs 91,530/kg, down by 0.9% or Rs 827.

Gold prices have fallen by Rs 500/10 gram in the last one week, while silver prices have remained flat, gaining merely Rs 150/kg.

On Monday, gold and silver settled on a weaker note in the domestic and the international markets. Gold December futures contract settled at Rs76,045 per 10 grams with a loss of 0.13% and silver December futures contract settled at Rs92,357 per kilogram with a loss of 1.06%.

Gold and silver showed profit taking amid Fed rate cut uncertainty due to the middle-east crisis and higher crude oil prices.

The dollar index and the U.S. 10-year bond yields are traded steady ahead of the U.S. inflation data. The U.S. 10-year bond yields crossed the 4.0% mark once again and increased fears of holding Fed rate cut cycles.

Today, the US Dollar Index, DXY, was hovering near the 102.40 mark, falling 0.14 or 0.14%.The Chinese central bank also holds its gold buying for the fifth consecutive month in September. However, the Russian central bank hints that adding $535.5 million precious metal reserves in the next three years could support gold and silver prices at lower levels. “Escalating the Hamas-Israel war and Israel’s aggression in Lebanon are also supporting precious metals prices. 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 U.S. inflation data but it is expected to hold its support level of $2,600 and $30.88 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Ranges for gold and silver by Manoj Kumar Jain:

• At MCX, gold has support at Rs 75,800-75,550 and resistance at Rs 76,300-76,600.
• Silver has support at Rs 91,550-90,700 and resistance at Rs 93,200-94,000.

“We suggest staying away from gold and silver in today’s session ahead of Fed meeting minutes,” Jain added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)