Gold, silver prices hit all-time highs tracking weak dollar; analysts see further upside
Gold October futures hit a peak of Rs 1,05,937/10 grams, while the silver December futures rose to a record high of Rs 1,24,369/kg.
On Friday, gold and silver settled on a positive note in the domestic and international markets. Gold October futures contract settled at Rs 1,03,824 per 10 grams with a gain of 1.69% and Silver December futures contract settled at Rs 1,21,873 per kg with a gain of 2.72%.
Gold and silver showed solid strength last week after the implementation of higher U.S. trade tariffs on India. Safe-haven buying and Fed rate cut possibilities are supporting both the precious metals. The rupee plunged against the U.S. dollar, hitting lifetime lows supporting the prices of gold and silver in the domestic markets.
Today, the US Dollar Index – DXY, was hovering near the 97.72 mark, falling 0.05 or 0.05%.
“Global uncertainty due to higher U.S. trade tariffs and weakness in the rupee continues to support prices of gold and silver,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the rupee and global uncertainty due to higher U.S. trade tariffs and the yellow metal is expected to trade in the range of $3,454-3,600 per troy ounce. Silver is expected to trade in the range of $39.10-42.20 per troy ounce this week,” he added.Analysts cite global economic uncertainty and a weakening rupee as key factors behind the continued rise in precious metal prices.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,03,330-1,02,800 and resistance at Rs 1,04,220-1,04,700
- Silver has support at Rs 1,20,650-1,19,500 and resistance at Rs 1,23,000-1,24,400
Jain suggests avoiding any kind of short selling in gold and silver and maintaining a buy on dips strategy on corrective dips.
He further noted that gold is expected to test Rs 1,07,000 and silver is expected to test Rs 1,27,000 in the short term.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,128/8 grams while pure gold (24 carat) prices stand at Rs 61,968/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,072/8 grams while pure gold (24 carat) prices stand at Rs 60,848/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,816/8 grams while pure gold (24 carat) prices stand at Rs 60,544/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,160/8 grams while pure gold (24 carat) prices stand at Rs 60,976/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)