Gold retreats from all-time highs; should investors book gains?

Gold prices witnessed profit booking after hitting a new all-time high of Rs 1,08,749 per 10 grams in the previous trading session. On Wednesday, the yellow metal opened lower by Rs 288 or 0.26% at Rs 1,08,745 per 10 grams following the release of the U.S. employment revision report.

Silver, however, traded firm, with MCX December futures up Rs 460 or 0.37% at Rs 1,24,920 per kg.

On Tuesday, gold and silver closed on a mixed note in both domestic and international markets. Gold October futures settled at Rs 1,09,033 per 10 grams, up 0.47%, while silver December futures ended at Rs 1,24,461 per kg, down 0.88%.

Prices showed sharp volatility as gold touched $3,700 per troy ounce for the first time in international markets, while silver crossed $42 per troy ounce for the first time in 14 years. Both slipped from record highs after the U.S. employment revision report.

The preliminary revision to U.S. employment data subtracted nearly one million jobs, three times worse than the 10-year average and the steepest downgrade since 2009. The ECE national benchmark revision to total non-farm employment for March 2025 was -911,000 (-0.6%).

“The worst revision in US non-farm employment increased worries of stagflation and supported the dollar index,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Jain expects gold and silver to remain volatile this week amid fluctuations in the dollar index and ahead of U.S. inflation data. He sees gold trading in the range of $3,510-3,770 per troy ounce and silver in the range of $39.10–44.00.On Wednesday, the U.S. Dollar Index (DXY) hovered near 97.77, down 0.02 points or 0.02%.

How to trade gold and silver?

According to Manoj Kumar Jain, the following ranges apply on MCX:

Gold: Support at Rs 1,08,350–1,07,600 and resistance at Rs 1,09,600–1,10,100

Silver: Support at Rs 1,23,500–1,22,400 and resistance at Rs 1,25,500–1,26,600

He suggests booking profits in long gold positions ahead of U.S. inflation data. For silver, he advises investors to keep a strict stop loss below Rs 1,23,500 and book profits near Rs 1,26,600.

Standard gold (22 carat) at Rs 58,432/8g; Pure gold (24 carat) at Rs 62,304/8g

Standard gold (22 carat) at Rs 56,960/8g; Pure gold (24 carat) at Rs 60,680/8g

Chennai

Standard gold (22 carat) at Rs 56,808/8g; Pure gold (24 carat) at Rs 60,568/8g

Hyderabad

Standard gold (22 carat) at Rs 56,880/8g; Pure gold (24 carat) at Rs 60,664/8g

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