Gold prices firm above Rs 1 lakh mark, hover near all-time highs ahead of RBI MPC outcome. What to expect?
Ahead of the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) outcome on Wednesday, precious metals were trading firmly. On the MCX, gold October futures were slightly lower by Rs 113 or 0.11% at Rs 1,01,091 per 10 grams, while silver September futures were marginally higher by Rs 115 or 0.10% at Rs 1,12,351 per kg.
On Monday, both gold and silver settled on a positive note in domestic and international markets. The gold October futures contract closed at Rs 1,01,204 per 10 grams, up 1.45%, while the silver September contract ended at Rs 1,12,236 per kg, gaining 1.79%.
Gold and silver extended their gains during a highly volatile session, as downbeat U.S. job data increased the likelihood of a Federal Reserve rate cut in its September meeting. The dollar index and U.S. 10-year bond yields continued to decline, further supporting precious metal prices.
As of today, the U.S. Dollar Index (DXY) was hovering near the 98.94 mark, down 0.16 or 0.16%.
“Gold and silver also gained amid the U.S. President’s threat to impose higher trade tariffs on India over Russian oil imports. The rupee slipped to a 5-1/2 month low against the U.S. dollar, supporting gold and silver prices in the domestic market,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
“Gold is trading near its long-term resistance of $3,454 per troy ounce. If prices sustain above this level on a closing basis, further strength could be seen in upcoming sessions,” he added.Jain expects gold and silver prices to remain volatile this week due to U.S. tariff concerns and fluctuations in the dollar index.How to Trade Gold?
Manoj Kumar Jain suggested the following key technical levels for trading on MCX:
– Gold: Support at Rs 1,00,100-99,650 | Resistance at Rs 1,01,555-1,02,200
– Silver: Support at Rs 1,11,650-1,11,100 | Resistance at Rs 1,13,000-1,14,200
– Strategy: Jain recommends buying silver above Rs 1,12,000 with a stop loss of Rs 1,11,100 for a target of Rs 1,14,000.
Gold price today in Delhi
22 carat: Rs 57,792 per 8 grams
24 carat: Rs 61,656 per 8 grams
Gold price today in Mumbai
22 carat: Rs 56,672 per 8 grams
24 carat: Rs 60,424 per 8 grams
Gold price today in Chennai
22 carat: Rs 56,912 per 8 grams
24 carat: Rs 60,600 per 8 grams
Gold price today in Hyderabad
22 carat: Rs 56,792 per 8 grams
24 carat: Rs 60,552 per 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)