Gold prices firm near Rs 98,800/10 grams, but more fall likely. Check what analysts say

Gold October futures prices at MCX held steady at Rs 98,801/10 grams, gaining Rs 105 or 0.11%, despite pressure from a stronger US dollar and easing geopolitical expectations of a potential breakthrough in talks between Trump, Putin, Ukrainian leader Zelenskiy, and European leaders fueled hopes of a ceasefire.

However, silver September contracts were weak as they traded lower by Rs 495 or 0.44% at Rs 1,10,850/kg.

On Tuesday, gold and silver settled on a weak note in the domestic and international markets. Gold October futures contract settled at Rs 98,696 per 10 grams with a loss of 0.71% and silver September futures contract settled at Rs 1,11,345 per kilogram with a loss of 0.98%.

Gold and silver have shown very high price volatility, extending their fall in the international and domestic markets ahead of the Fed Chairman’s keynote speech at the Jackson Hole Symposium later this week.

The precious metals also plunged ahead of the Fed’s monetary policy meeting minutes. The dollar index was slightly up and also pushed gold and silver prices lower. The rupee is showing strength and is additionally pressurising gold and silver prices in the domestic markets.

The US Dollar Index, DXY, was seen hovering near the 98.33 mark, falling 0.07 or 0.07% on Wednesday. “Traders are looking cautious ahead of the Fed Chairman’s comments on the monetary policy, inflation and economic growth and will be directional for the bullion markets,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.“We expect gold and silver prices to remain volatile this week amid possibility of ceasefire deal in the Russia-Ukraine war, volatility in the rupee and ahead of the Fed Chairman’s speech and gold is expected to trade in the range of $3,320-3,424 per troy ounce and silver is expected to trade in the range of $36.40-38.70 per troy ounce this week,” he added.

How to trade gold?

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

• Gold has support at Rs 98,380-98,000 and resistance at Rs 99,000-99,360
• Silver has support at Rs 1,10,800-1,10,000 and resistance at Rs 1,12,000-1,12,800

Jain suggests avoiding fresh positions in gold and silver ahead of the Fed meeting minutes.

Gold rates in physical markets

Gold Price today in DelhiStandard gold (22 carat) prices in Delhi stand at Rs 58,176/8 grams, while pure gold (24 carat) prices stand at Rs 62,064/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 56,960/8 grams, while pure gold (24 carat) prices stand at Rs 60,728/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 57,016/8 grams, while pure gold (24 carat) prices stand at Rs 60,784/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 56,728/8 grams, while pure gold (24 carat) prices stand at Rs 60,520/8 grams.

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