Forex Trading, News, Systems and More

Gold Price Prediction: Gold price falls by Rs 3,000/10 gram. More downside ahead?

After Iran and Israel officially announced a ceasefire, Gold August futures contracts at MCX slipped by Rs 3,000 or nearly 3% to hit their low of Rs 96,422/10 grams in early trade, while the silver July futures contracts also fell by Rs 760 or 0.6% to their day’s low of Rs 1,06,011/kg.

However, on Monday, gold and silver settled on a positive note in the domestic and international markets. The gold August futures contract settled at Rs 99,388 per 10 grams with a gain of 0.28% and the silver July futures contract settled at Rs 1,06,759 per kilogram with a gain of 0.50%.

Gold and silver gained in the previous trading session due to safe-haven buying after the U.S. strikes Iran’s nuclear facilities over the weekend. Gold prices tested $3,400 per troy ounce levels once again and silver prices also crossed $36 per troy ounce levels but off the day’s high.

“Changing circumstances in the Middle East every minute increased volatility in the precious metal segment,” noted Manoj Kumar Jain of Prithvifinmart Commodity Research.

Later, the U.S. President surprisingly announced the ceasefire between Israel and Iran at midnight and both precious metals are showing profit taking from previous sessions’ higher levels.

However, the dollar index had also plunged and slipped below 98 levels and could support gold and silver prices at lower levels. Today, the US Dollar Index, DXY, was hovering near the 98.12 mark, falling 0.30 or 0.30%.“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and Fed Chairman’s testify but gold prices could hold their 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,” he added.“Gold to remain strong amid ongoing political and economic uncertainties. Investors are also watching U.S. economic data this week after the Federal Reserve maintained its current interest rate policy,” noted Neha Quereshi, Senior Technical & Derivative Analyst, Anand Rathi Commodities & Currencies.

Technically, she noted, gold faces resistance near the $3,400 mark in the international market, with a breakout potentially pushing prices toward $3,435 and $3,452. A sustained rally could target the $3,500 all-time high.

How to trade gold?

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

  • Gold has support at Rs 98,850-98,440 and resistance at Rs 99,800-1,00,200
  • Silver has support at Rs 1,06,000-1,05,000 and resistance at Rs 1,07,400-1,08,000

Jain suggests buying silver on dips around Rs 1,05,000 with a stop loss of Rs 1,04,000 for a target of Rs 1,07,000.

Intraday Trading Strategy by Neha Qureshi:

  • Buy MCX August Gold futures at Rs 99,000 with a stop loss of Rs 98,800 and a price target of Rs 99,500.
  • Buy MCX July Silver futures at Rs 1,06,000 with a stop loss of Rs 1,05,000 and a price target of Rs 1,08,000.

Gold rates in physical markets

Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,248/8 grams while pure gold (24 carat) prices stand at Rs 61,056/8 grams.

Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 56,920/8 grams while pure gold (24 carat) prices stand at Rs 60,624/8 grams.

Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 57,072/8 grams while pure gold (24 carat) prices stand at Rs 60,800/8 grams.

Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,800/8 grams while pure gold (24 carat) prices stand at Rs 60,504/8 grams.

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