Gold prices inch above Rs 1.3 lakh, FOMC meet outcome to play key trigger this week. Here’s how to trade
Gold and silver prices opened on a firm note in early trade on Tuesday, with gold futures on the Multi Commodity Exchange (MCX) rising 0.10% to Rs 1,30,091 per 10 grams and silver futures gaining 0.53% to Rs 1,82,699 per kilogram. The rebound comes a day after both precious metals ended in the red, weighed down by profit-taking and macroeconomic cues.
Gold and silver prices closed in the red on Monday, both in domestic and international markets, amid profit-booking and global macroeconomic cues. On the Multi Commodity Exchange (MCX), gold February futures settled at Rs 1,29,662 per 10 grams, down 0.38%, while silver March futures ended at Rs 1,81,742 per kilogram, falling 0.91%.
The decline in precious metals comes ahead of the U.S. Federal Reserve’s monetary policy meetings, with market participants exercising caution. A rebound in U.S. 10-year bond yields also weighed on sentiment. Additionally, investor focus remains on the U.S. Producer Price Index (PPI) data for October and November, which is now scheduled for release in January.
“The uncertainty around inflation figures is increasing speculation that the U.S. Fed may issue a hawkish tone during its policy review,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Jain, however, noted positive cues as well — including the People’s Bank of China adding gold for a 13th consecutive month and ongoing physical delivery shortages in silver, which could lend support to prices. According to him, gold and silver may continue to find support at $3,960 and $54.40 per troy ounce respectively in the international market.
“However, continued gold buying by China for the 13th straight month and tightness in physical silver supply may offer downside support,” said Rahul Kalantri, VP Commodities at Mehta Equities.
The U.S. Dollar Index (DXY) also remained firm, hovering near 99.05, down by 0.07 points or 0.07%, adding to the pressure on metal prices.Looking ahead, Jain expects gold and silver to trade with high volatility this week, driven by fluctuations in the dollar index, movements in global financial markets, and developments from the U.S. Fed’s policy decisions.
Trading strategy for gold and silver:
Gold
Support: Rs 1,29,100–Rs 1,28,600
Resistance: Rs 1,30,300–Rs 1,31,000
Recommendation: Buy around Rs 1,29,500 with a stop loss at Rs 1,28,800 and a target of Rs 1,31,000.
Silver
Support: Rs 1,80,000–Rs 1,78,400
Resistance: Rs 1,83,300–Rs 1,85,100
Recommendation: Buy around Rs 1,80,000 with a stop loss at Rs 1,76,500 and a target of Rs 1,87,000.
Gold rates in physical markets
Gold price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 97,952/8 grams, while pure gold (24 carat) prices stand at Rs 1,05,440/8 grams.
Gold price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 97,912/8 grams, while pure gold (24 carat) prices stand at Rs 1,05,440/8 grams.
Gold price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 97,080/8 grams, while pure gold (24 carat) prices stand at Rs 1,04,472/8 grams.
Gold price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 97,320/8 grams, while pure gold (24 carat) prices stand at Rs 1,04,736/8 grams.
Also read: India’s current bull run triggered a big wealth transfer from poor to rich: Shankar Sharma
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)