Gold prices rally by Rs 2,400/10 grams in August so far, analysts predict further upside

Gold October futures prices at MCX have surged impressively by Rs 2,430 per 10 grams so far in August. However, they retreated slightly from their high today to trade at Rs 1,01,052 per 10 grams, down Rs 746 or 0.73% in intraday trade.

Similarly, silver September contracts witnessed slight profit booking, trading lower by Rs 390 or 0.34% at Rs 1,14,491 per kg.

On Friday, gold and silver settled on a positive note in both domestic and international markets. Gold October futures settled at Rs 1,01,798 per 10 grams with a gain of 0.33%, while silver September futures settled at Rs 1,14,881 per kg with a gain of 0.52%.

However, prices slipped below $3,380 per ounce on Monday morning after news broke that US President Donald Trump will meet Russian President Vladimir Putin on August 15 in Alaska to discuss the Ukraine conflict, reducing safe-haven demand.

Gold and silver extended their gains last week amid US trade tariff uncertainty and profit-taking in the dollar index. Gold prices hit a lifetime high in the international markets and closed at record levels, while silver crossed the $38.50 per troy ounce mark. Safe-haven buying by global central banks and ongoing geopolitical uncertainty continue to support bullion prices.

“Gold crossed its resistance level of $3,454 per troy ounce, and if prices sustain above these levels, they could strengthen further toward $3,509–3,540 per troy ounce in upcoming sessions,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Today, the US Dollar Index (DXY) hovered near 98.05, down 0.13 points or 0.13%.“We expect gold and silver prices to remain volatile this week amid US tariff uncertainty and fluctuations in the dollar index. Gold is expected to trade in the range of $3,410–3,540 per troy ounce, while silver may trade between $36.80 -40.00 per troy ounce,” he added.

How to trade gold?

Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:

• Gold has support at Rs 1,01,000-1,00,575 and resistance at Rs 1,02,220-1,02,850
• Silver has support at Rs 1,13,650-1,12,800 and resistance at Rs 1,15,500-1,16,650

Jain suggests buying silver on dips around Rs 1,14,000 with a stop loss of Rs 1,12,800 for a target of Rs 1,16,000.

Gold rates in physical markets:

Gold price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 57,672/8 grams while pure gold (24 carat) prices stand at Rs 61,456/8 grams.

Gold price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 57,600/8 grams while pure gold (24 carat) prices stand at Rs 61,456/8 grams.

Gold price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 57,000/8 grams while pure gold (24 carat) prices stand at Rs 60,736/8 grams.

Gold price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 57,096/8 grams while pure gold (24 carat) prices stand at Rs 60,888/8 grams.

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