Gold prices above Rs 1 lakh, but silver shines at new highs. Time to ditch gold and buy silver?
Extending their rising streak, Gold October futures prices at MCX rose by Rs 33, or 0.03%, to trade at Rs 1,01,575 per 10 grams, even as the 50% tariffs imposed by the USA on India came into effect.
However, silver September contracts were resilient, surging by Rs 753, or 0.65%, to a new all-time high of Rs 1,16,850 per kilogram on Thursday.
In the last trading session, gold and silver settled on a positive note in the domestic market and slightly weaker in international markets. The Gold October futures contract settled at Rs 1,01,542 per 10 grams, gaining 0.45%, while the Silver September futures contract settled at Rs 1,16,097 per kilogram, up 0.24%.
Amid concerns over the independence of the Federal Reserve following U.S. President Donald Trump’s threats to dismiss Fed Governor Lisa Cook, gold prices hovered near a two-week high, supported by their safe-haven appeal.
“Market participants are anticipating a 25-basis-point rate cut at the Fed’s upcoming policy meeting next month, with the CME FedWatch Tool placing the probability at over 88%. Investors also appear confident that a potential new wave of U.S. tariffs could weigh on global economic strength, making trade policy another key driver for gold,” said Renisha Chainani, Head of Research at Augmont.
In addition, ongoing geopolitical risks, including Ukraine’s intensified strikes on Russian energy infrastructure, have further supported bullion’s safe-haven demand.“Uncertainty in the global financial markets due to higher U.S. trade tariffs and geopolitical tensions is supporting prices. The dollar index was also off its day’s high on Wednesday, supporting prices of both precious metals. The rupee is trading near lifetime lows against the U.S. dollar, supporting gold and silver prices in the domestic markets,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index (DXY) hovered near 98.14, falling 0.09, or 0.09%.
“We expect gold and silver prices to remain volatile this week amid fluctuations in the dollar index and the rupee, along with updates on the Russia-Ukraine peace deal. Gold is expected to trade in the range of $3,340–3,474 per troy ounce, and silver is expected to trade in the range of $37.70–40.40 per troy ounce,” he added.
How to trade gold?
Renisha Chainani noted that Gold October futures are expected to continue their upside momentum toward $3,485 (Rs 1,02,500) if it sustains above $3,445 (Rs 1,01,500).
Meanwhile, as Silver September futures have broken their range and sustained above $38.80 (Rs 1,16,000), upside momentum could push prices toward a new high of $40 (Rs 1,20,000) this week.
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold support: Rs 1,01,200–1,00,720 | Resistance: Rs 1,01,850–1,02,200
- Silver support: Rs 1,15,115–1,14,400 | Resistance: Rs 1,16,650–1,17,400
Jain recommends booking profits in long positions of gold around Rs 1,02,000 and accumulating silver on dips around Rs 1,15,500–1,14,000, with a stop loss of Rs 1,12,800 for a target of Rs 1,17,000–1,18,800.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,280/8 grams while pure gold (24 carat) prices stand at Rs 62,184/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,928/8 grams while pure gold (24 carat) prices stand at Rs 61,712/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,696/8 grams while pure gold (24 carat) prices stand at Rs 60,832/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,008/8 grams while pure gold (24 carat) prices stand at Rs 56,968/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)