Gold prices reclaim Rs 1 lakh/10 g mark after dovish remarks from US Fed chairman. Right time to buy?
Gold October futures prices at MCX on Monday were once again trading above the psychological Rs 1 lakh mark, at Rs 1,00,411/10 grams, slightly higher by Rs 27 or 0.03%.
Silver September contracts were also resilient, trading at Rs 1,16,383/kg, up by Rs 147 or 0.13%.
On Friday, gold and silver settled on a positive note in both domestic and international markets. The gold October futures contract settled at Rs 1,00,384 per 10 grams, gaining 0.95%, while silver September futures settled at Rs 1,16,236 per kilogram, up 2.23%.
Gold and silver showed high price volatility and rebounded after U.S. Fed Chair Jerome Powell signaled potential interest rate cuts in his speech at the annual Jackson Hole Symposium on Friday. He highlighted growing economic risks due to rising inflation but noted room for rate cuts in upcoming policy meetings. His comments boosted market sentiment and supported precious metal prices.
The rally was further aided by profit booking in the dollar index and a decline in U.S. 10-year bond yields. However, persistent inflation concerns and sluggish economic activity may prevent aggressive rate cuts, capping further upside.
“Gold and silver also gained amid profit booking in the dollar index and weakness in U.S. 10-year bond yields. However, concerns about higher U.S. inflation and slower economic activity could limit aggressive Fed rate cuts and restrict gains in precious metals,” noted Manoj Kumar Jain of Prithvi Finmart Commodity Research.Today, the U.S. Dollar Index (DXY) hovered near 97.90, up 0.18 or 0.18%.“We expect gold and silver prices to remain volatile this week amid fluctuations in the dollar index, rupee movements, and updates on the Russia-Ukraine peace deal. Gold is expected to trade between $3,340–3,474 per troy ounce and silver between $37.70–40.40 per troy ounce this week,” he added.“Geopolitical tensions also contributed to safe-haven flows, with Ukraine’s President Zelensky pledging continued resistance against Russia amid reports of strikes on power and energy facilities, including a nuclear plant fire in Kursk,” added Rahul Kalantri, VP Commodities at Mehta Equities.
How to trade gold
Manoj Kumar Jain suggested the following MCX ranges:
- Gold support: Rs 99,920–99,550, resistance: Rs 1,00,700–1,01,100
- Silver support: Rs 1,15,500–1,14,400, resistance: Rs 1,17,000–1,18,000
He recommends buying gold on dips around Rs 99,900 with a stop loss of Rs 99,380, targeting Rs 1,01,100. Similarly, buy silver on dips around Rs 1,15,200, with a stop loss of Rs 1,14,000 and a target of Rs 1,17,400.
Rahul Kalantri noted support and resistance levels as:
- Gold support: Rs 99,680–99,450, resistance: Rs 1,00,650–1,00,850
- Silver support: Rs 1,15,350–1,14,550, resistance: Rs 1,16,750–1,17,250
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,184/8 grams while pure gold (24 carat) prices stand at Rs 60,912/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,472/8 grams while pure gold (24 carat) prices stand at Rs 61,312/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,712/8 grams while pure gold (24 carat) prices stand at Rs 60,440/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,784/8 grams while pure gold (24 carat) prices stand at Rs 60,488/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)