Gold price inches higher by Rs 600 per 10 gram amid safe haven buying. Analysts predict more upside
Safe haven buying pushed precious metals higher in early trade as Gold August futures contracts at MCX opened higher by Rs 558 or 0.58 % at Rs 97,249/10 g as the U.S. President Donald Trump’s uncertain trade policies increased uncertainty in the markets.
Meanwhile, silver September futures contracts also opened significantly higher at Rs 1,10,411/kg, up by Rs 1,288 or 1.18%.
On Thursday, gold and silver settled on a positive note in the domestic and international markets. Gold August futures contract settled at Rs 96,691 per 10 grams with a gain of 0.24% and silver September futures contract settled at Rs 1,09,123 per kilogram with a gain of 1.73%.
Gold and silver gained amid the U.S. President’s uncertain trade policies, which increased uncertainty in the global financial markets. Trump’s statement of imposing 50% traded tariffs on copper imports and imposing 50% tariffs on Brazil and 10% additional tariffs on BRICS nations hurt market sentiments and supported safe-haven buying for precious metals.
Gold prices hold their support level of $3,280 per troy ounce and rebound again. Silver also surpasses its resistance level of $37 per troy ounce in the international markets.
“Trump’s tariff uncertainty and weakness in the global equity markets could continue to push precious metals up,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.However, the dollar index and the U.S. bond yield also rebound and could limit gains of precious metals. Today, the US Dollar Index, DXY, was hovering near the 97.84 mark, gaining 0.18 or 0.19%.“We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index and U.S. trade tariff uncertainty but gold prices could hold its support level of $3,280 per troy ounce and silver prices could also hold $36.40 per troy ounce levels on a weekly closing basis,” he added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 96,300-96,000 and resistance at Rs 97,000-97,440
- Silver has support at Rs 1,08,000-1,07,200 and resistance at Rs 1,10,200-1,11,000
Jain suggests buying gold above Rs 96,600 with a stop loss of Rs 96,280 for a target of Rs 97,200. He further suggests buying silver around Rs 1,09,000 with a stop loss of Rs 1,08,200 for a target of Rs 1,11,000.
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Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,176/8 grams while pure gold (24 carat) prices stand at Rs 60,944/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,520/8 grams while pure gold (24 carat) prices stand at Rs 61,288/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,976/8 grams while pure gold (24 carat) prices stand at Rs 60,680/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,120/8 grams while pure gold (24 carat) prices stand at Rs 60,848/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)