Gold Price Prediction: Yellow metal slips by Rs 2,900/10 gms, Silver touches another high. What’s ahead

Gold August future contracts on MCX fell for the third consecutive session on Monday, slipping by nearly Rs 2,900/10 grams amid strong profit booking. The yellow metal hit a multi-month high last week. The same opened lower by Rs 703 or 0.72% at Rs 96,333/10 grams.

Meanwhile, silver July futures contracts stood firm near their higher levels. The white metal hit yet another lifetime high of Rs 1,05,460/kg in early trade, however, slipped from that level to trade slightly lower at Rs 1,05,183/kg.

On Friday, gold and silver settled on a mixed note in the domestic and international markets. Gold August futures contract settled at Rs 97,036 per 10 grams with a loss of 0.86% while silver July futures contract settled at Rs 1,05,459 per kilogram with a gain of 0.97%.

Gold and silver saw intense price action last week. Gold bulls struggled as prices slipped below the key $3,400 level, pressured by upbeat U.S. JOLTS data and a strengthening dollar. The reopening of trade talks between the U.S. and China added further headwinds.

Silver, however, stood out with strong gains, hitting a 13-year high on the global stage and achieving lifetime highs at home. Silver prices crossed $36 per troy ounce levels after a long consolidation and showing strength.

“Improving sentiment from softer European inflation and trade optimism helped silver breach the $36 level, breaking out of a long-standing consolidation range,” said Rahul Kalantri, VP Commodities, Mehta Equities.Meanwhile, Manoj Kumar Jain of Prithvi Finmart Commodity Research said, “We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and ahead of the U.S. inflation data; gold prices could hold its support level of $3,240 per troy ounce and silver prices could also hold $34.00 per troy ounce levels on a weekly closing basis.”Today, the US Dollar Index, DXY, was hovering near the 98.99 mark, falling 0.20 or 0.20%.

How to trade gold?

Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:

• Gold has support at Rs 96,600-96,100 and resistance at Rs 97,700-98,200
• Silver has support at Rs 1,04,400-1,03,650 and resistance at Rs 1,06,500-1,07,400

Jain suggests buying silver on dips around the Rs 1,04,000-1,03,500 range with a stop loss of Rs 1,02,400 for a target of Rs 1,06,500.

Rahul Kalantri noted that gold has support at Rs 96,720-96,390 while resistance is at Rs 97,350-97,640. Silver has support at Rs 1,04,560-1,03,750 while resistance is seen at Rs 1,06,350-1,06,950.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22-carat) prices in Delhi stand at Rs 57,800/8 grams while pure gold (24-carat) prices stand at Rs 61,640/8 grams.

Gold Price today in Mumbai

Standard gold (22-carat) prices in Mumbai stand at Rs 56,624/8 grams while pure gold (24-carat) prices stand at Rs 60,392/8 grams.

Gold Price today in Chennai

Standard gold (22-carat) prices in Chennai stand at Rs 56,664/8 grams while pure gold (24-carat) prices stand at Rs 60,448/8 grams.

Gold Price today in Hyderabad

Standard gold (22-carat) prices in Hyderabad stand at Rs 56,960/8 grams while pure gold (24-carat) prices stand at Rs 60,712/8 grams.

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