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Gold Price Today: Yellow metal opens flat at Rs 77,971/10 gm, silver opens at Rs 97,450/kg

After witnessing profit booking on the higher levels yesterday, Gold December futures contracts at MCX on Thursday opened flat at Rs 77,971 per 10 gram, which is up by 0.2% or Rs 159 while silver December futures contracts were trading at Rs 97,450/kg, up by 0.51% or Rs 490.

On Wednesday, gold and silver settled on a weaker note in the domestic and international markets. Domestic markets were also settled on a weaker note. Gold December futures contract settled at Rs77,812 per 10 grams with a loss of 1.07% and silver December futures contract settled at Rs96,960 per kilogram with a loss of 3.01%.

Gold and silver showed profit taking from record higher levels after strong gains in the dollar index and the U.S. 10-year bond yields.

Uncertainties over U.S. elections increased safe-haven demand for the U.S. dollar and bond investments. The dollar index hit 3-month high and crossed 104 marks while the U.S. 10-year bond yields also crossed 4.25% levels.

Today, the US Dollar Index, DXY, was hovering near the 104.34 mark, falling 0.09 or 0.08%.

“Sell-off in the global equity markets and the possibility of lower Fed rate cuts triggered profit taking in gold and silver. We have already suggested booking profits in gold and silver in our reports yesterday,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.“However, geo-political tensions and de-dollarization are supporting precious metals. The Bank of Canada cut interest rates by 50 basis points on Wednesday and also supported gold and silver prices at lower levels. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and geo-political tensions,” Jain added.

Ranges for gold and silver by Manoj Kumar Jain:

  • At MCX, gold has support at Rs 77,480-77,200 and resistance at Rs 78,140-78,500.
  • Silver has support at Rs 96,100-95,200 and resistance at Rs 97,750-98,800.

“ We suggest booking profits in gold and silver at higher levels and wait for some corrective dips for initiating fresh long positions,” said Jain.

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