Gold Price Prediction: Yellow metal prices plunge by Rs 2k in 2 days amid Iran-Israel war de-escalation. Is the shine fading?
With de-escalating tensions between Iran and Israel, the demand for safe haven slipped as the prices of gold August futures contracts at MCX slipped by Rs 2,000 in just 2 days. The bullion opened today at Rs 97,365/10 grams.
Meanwhile, silver July futures contracts also slipped by Rs 1,450 in the same time, opening at Rs 1,05,305/kg today.
On Tuesday, gold and silver settled on a weaker note in the domestic and international markets. Gold August futures contract settled at Rs 97,023 per 10 grams with a loss of 2.38% and silver July futures contract settled at Rs 1,04,917 per kilogram with a loss of 1.73%.
Gold and silver showed a heavy sell-off in the international markets after the U.S. President announced a ceasefire in the Israel-Iran war. De-escalation in the Middle East safe-haven premium of both precious metals pushed prices lower
“Gold and silver also plunged amid a rebound in the global equity markets and major risk aversion due to de-escalation in the Middle East,” said Manoj Kumar Jain of Prithvifinmart Commodity Research
The U.S. Fed Chairman’s speech was also in line with the expectations and unable to support precious metal prices.“However, weakness in the dollar index and escalation in the Russia-Ukraine war could support gold and silver prices. 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 its support level of $3,240 per troy ounce and silver prices could also hold $34.00 per troy ounce on a weekly closing basis,” he added.Today, the US Dollar Index, DXY, was hovering near the 97.91 mark, gaining 0.06 or 0.06%.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 96,400-96,100 and resistance at Rs 97,500-97,85
- Silver has support at Rs 1,04,200-1,03,650 and resistance at Rs 1,05,700-1,06,400
Jain suggests buying gold on dips around Rs 96,650 with a stop loss of Rs 96,300 for a target of Rs 97,400.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,368/8 grams while pure gold (24 carat) prices stand at Rs 62,208/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,192/8 grams while pure gold (24 carat) prices stand at Rs 60,984/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,808/8 grams while pure gold (24 carat) prices stand at Rs 60,600/8 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 60,728/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)