Gold prices take a breather, but hold firm above Rs 1.12 lakh/10 gms. Time to book gains or ride the trend?
However, Silver December futures prices on MCX opened higher at Rs 1,34,355/kg, up by Rs 353 or 0.26%.
In the international market, gold prices held steady on Thursday as investors awaited key U.S. economic data for further insights into Federal Reserve policy, with a slightly weaker dollar lending some support to bullion.
Spot gold was steady at $3,734.04 per ounce, as of 0202 GMT. U.S. gold futures for December delivery were unchanged at $3,765.20.
San Francisco Federal Reserve Bank President Mary Daly said on Wednesday she “fully supported” the decision by the Fed to cut its policy rate last week and expects further reductions ahead.
On Tuesday, Fed Chair Jerome Powell emphasised the need to balance inflation risks and a weakening jobs market in upcoming policy decisions.Investors are awaiting the personal consumption expenditures (PCE) price index report, the Fed’s preferred inflation measure, on Friday for further interest rate cues.On Wednesday, gold and silver settled on a weaker note in the domestic market and international markets. Gold October futures contract settled at Rs 1,12,555 per 10 grams with a loss of 1.13% and silver December futures contract settled at Rs 1,34,002 per kilogram with a loss of 0.78%.
Gold and silver show profit taking from the record-high levels amid a rebound in the dollar index after better-than-expected U.S. new home sales data.
The dollar index crossed 97marks once and the U.S. 10-year bond yield also surged and easing safe-haven buying for precious metals. Gold prices slipped from record-high levels and silver prices also slipped from 14-1/2 year highs.
Today, the US Dollar Index, DXY, was hovering near the 97.78 mark, gaining 0.10 or 0.10%.
“The U.S. Fed Chairman’s worries about inflation and the U.S. job markets and no commitment for the aggressive rate cuts, were also a reason for profit booking,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
However, Jain believes that geopolitical tensions and global central banks’ buying could continue to support gold and silver prices.
Jain added that gold prices crossed $3,454 and silver prices also crossed $39.10 per troy ounce levels and could show further strength in the upcoming sessions.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets and ahead of the U.S. core PCE price index data and gold are expected to trade in the range of $3,654-3,840 per troy ounce and silver is expected to trade in the range of $42.40-45.50 per troy 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 1,12,100-1,11,660 and resistance at Rs 1,12,880-1,13,300
- Silver has support at Rs 1,32,800-1,31,500 and resistance at Rs 135200-136600
Jain suggests waiting for some corrective dips for initiating fresh long positions in gold and silver.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 85,512/8 grams while pure gold (24 carat) prices stand at Rs 91,800/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 85,104/8 grams while pure gold (24 carat) prices stand at Rs 91,424/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 84,320/8 grams while pure gold (24 carat) prices stand at Rs 90,592/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 84,568/8 grams while pure gold (24 carat) prices stand at Rs 90,864/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)