Gold prices stuck in range for 2 weeks—Is bullion nearing a breakout or bracing for a sharp fall?
Gold and silver prices opened with mild gains on the Multi Commodity Exchange (MCX) on Thursday, with both metals continuing to trade near key resistance levels that analysts are closely watching for a breakout. On the MCX, gold futures for December 5 delivery were trading at Rs 1,20,853 per 10 grams, up Rs 240 or 0.2%.Over the last two weeks, gold has been trading in a range between Rs 1,22,325 and Rs 1,17,628.
Meanwhile, silver December futures opened at Rs 1,47,850 per kg, rising Rs 781 or 0.53%.
On Thursday, gold and silver settled on a weaker note in the domestic market and on a slightly weaker note in the international markets. The gold December futures contract settled at Rs 1,20,613 per 10 grams with a gain of 0.08%, while the silver December futures contract settled at Rs 1,47,069 per kilogram with a loss of 0.17%.
Gold and silver showed very high volatility and gained in the early trading session but slipped from their highs amid profit-taking. Gold and silver are facing steep resistance at higher levels but are also holding their key support levels.
The dollar index has slipped from three-month highs, and uncertainty surrounding the ending of the U.S. shutdown could support safe-haven buying for precious metals.
Also read: Nomura upgrades Asian Paints, Berger Paints to Buy. Here’s why analysts are turning bullishToday, the U.S. Dollar Index (DXY) was hovering near the 99.78 mark, gaining 0.05 or 0.05%.“Geo-political tensions are also supporting precious metal prices. Gold is holding its make-or-break level of $3,870, and silver is also holding its support level of $46.50 per troy ounce on a closing basis,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
“We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index, volatility in the global financial markets, and uncertainty surrounding the ending of the U.S. shutdown. Gold is expected to trade in the range of $3,922–4,054 per troy ounce, and silver is expected to trade in the range of $47.00–48.84 per troy ounce in today’s session,” he added.
Echoing the same sentiment, Rahul Kalantri, VP Commodities at Mehta Equities, noted, “Precious metals started the session on a positive note but later retreated from intraday highs as traders booked profits. Despite the selling pressure, gold and silver remain well-supported at lower levels.”
“Technically, gold’s key make-or-break level stands at $3,855, while silver is defending the $46.70 support zone,” he added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on the MCX:
- Gold has support at Rs 1,20,000–1,19,400 and resistance at Rs 1,21,200–1,21,850.
- Silver has support at Rs 1,46,100–1,45,000 and resistance at Rs 1,48,200–1,49,400.
Jain expects gold and silver to trade in a range in the near term. However, a breakout above Rs 1,21,750 on a closing basis for gold and above Rs 1,50,000 for silver could trigger a fresh upside rally in the upcoming sessions.
Further, Rahul Kalantri noted that gold has support at Rs 1,19,870–1,19,280, while resistance is at Rs 1,21,090–1,21,600. Silver has support at Rs 1,46,450–1,45,750, while resistance is seen at Rs 1,48,340–1,49,280.
Gold rates in physical markets
Gold price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 90,152 per 8 grams, while pure gold (24 carat) prices stand at Rs 96,984 per 8 grams.
Gold price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 90,616 per 8 grams, while pure gold (24 carat) prices stand at Rs 97,480 per 8 grams.
Gold price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 90,048 per 8 grams, while pure gold (24 carat) prices stand at Rs 96,752 per 8 grams.
Gold price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 90,432 per 8 grams, while pure gold (24 carat) prices stand at Rs 97,176 per 8 grams.
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(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)