Gold Price Today: Gold gains Rs 1,300/10 gm in 2 days; silver up Rs 3,300/kg

Gold October futures contracts at MCX opened higher today at Rs 72,230 per 10 gram, which is up by 0.56% or Rs 406 while silver December futures contracts were trading at Rs 87,727/kg, down by 0.73% or Rs 632.

In the last 2 days, the prices of gold have gained Rs 1,300/10 gm while silver has gained Rs 3,300 per kilogram.

On Thursday, gold and silver settled on a positive note in the international as well as the domestic markets. Gold October futures contract settled at Rs72,824 per 10 grams with a gain of 1.25% and silver December futures contract settled at Rs87,095 per kilogram with a gain of 3.13%.

Gold and silver posted solid gains after hefty interest rate cuts by the ECB and weakness in the dollar index. The European Central Bank cuts deposit rates by 25 basis points to 3.50% and refinancing rates by 60 basis points to 3.65% from 4.25% earlier.

The dollar index plunged and the U.S. 10-year bond yields slipped below 3.70% once again. Gold prices hit lift-time high in the international markets and silver prices also surged to 3-week highs after ECB rate cuts. The U.S. CPI inflation was also inline expectations and the U.S. jobless claims increased last week to 2,30,000 from 2,27,000 claims in the previous week.

Today, the US Dollar Index, DXY, was hovering near the 101.07 mark, falling 0.30 or 0.30%.“The U.S. inflation and unemployment data will prompt the U.S. Fed for larger rate cuts in the upcoming policy meetings and could support gold and silver prices. We expect gold and silver prices to remain positive in today’s session amid weakness in the dollar index and rebound in crude oil prices and expected to hold its support level of $2,500 and $28.80 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Ranges for gold and silver by Manoj Kumar Jain:

• At mcx, gold is having support at 72,550-72,270 and resistance at 73,050-73,300
• Silver has support at 86,300-85,500 and resistance at 87,750-88,400

“We suggest buying gold on dips around 72550 with a stop loss of 72250 for the target of 73100,” Jain added.

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