Gold Price Prediction: Yellow metal gets cheaper by Rs 3,750/10 gm this week. More fall ahead?
Displaying high volatility, Gold June futures contracts at MCX opened lower by Rs 314 or 0.34% at Rs 92,855/10 g after settling positively in the previous trading session. In this week alone, the prices of yellow metal have fallen by Rs 3,750.
Meanwhile, silver July futures contracts also opened slightly lower by Rs 826 or 0.84% at Rs 97,292/kg.
On Thursday, gold and silver settled on a positive note in the domestic and international markets. Gold June futures contract settled at Rs 93,169 per 10 grams with a gain of 0.98% and silver July futures contract settled at Rs 95,915 per kilogram with a gain of 0.47%.
Gold and silver showed roller coaster moves as prices fell in the early trading session due to easing US-China trade conflicts and the possibility of a US-Iran nuclear deal, but prices recovered from their lows after mixed U.S. economic data and profit taking in the dollar index.
“Gold prices tested their key support level of $3140 per troy ounce in the international markets but held on a closing basis, and silver prices also recovered amid easing U.S. PPI data and better than expected U.S. retail sales data,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
The U.S. PPI was down 0.5% month on month against expectations of a rise of 0.3%. The dollar index and the U.S. 10-year bond yields also plunged and supported gold and silver prices.The US Dollar Index, DXY, was hovering near the 100.68 mark, falling 0.20 or 0.20% today.“Easing geopolitical tensions and a US-China trade deal could limit gains of gold and silver. We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index and US inflation expectations data; gold prices could hold its key support level of $3,140 per troy ounce and silver prices could also hold $31.40 per troy ounce levels,” he added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 92,550-92,000 and resistance at Rs 93,660-94,140
- Silver has support at Rs 95,300-94,500 and resistance at Rs 96,650-97,400
Jain suggests buying silver around Rs 95,500 with a stop loss of Rs 95,000 for a target of Rs 96,650.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,272/8 grams while pure gold (24 carat) prices stand at Rs 61,112/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,512/8 grams while pure gold (24 carat) prices stand at Rs 61,304/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,808/8 grams while pure gold (24 carat) prices stand at Rs 60,608/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,904/8 grams while pure gold (24 carat) prices stand at Rs 60,664/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)