Gold bounces from lows after prices fall by Rs 1,500/10 grams this week. Can yellow metal rally further?
Gold October futures prices on MCX have fallen by Rs 1,500 so far this week after hitting a new all-time high of Rs 1,02,191 per 10 grams on Friday. Prices later bounced from these lows to trade at Rs 1,00,342 per 10 grams around noon today, higher by Rs 185 or 0.18%.
Silver September contracts remained resilient, trading at Rs 1,14,976 per kg, up by Rs 1,239 or 1.09%. The demand for non-yielding assets was supported by softer-than-expected CPI data, which reinforced expectations of a September Fed rate cut.
On Tuesday, gold and silver ended on a mixed note in both domestic and international markets. Gold October futures settled at Rs 1,00,157 per 10 grams, down 0.16%, while silver September futures closed at Rs 1,13,737 per kg, up 0.39%.
Both metals showed high price volatility, recovering from the day’s lows after U.S. inflation data met expectations, increasing the likelihood of interest rate cuts in the September policy meeting. The U.S. core CPI rose 0.3% in July, while headline CPI was up 0.2%, in line with forecasts.
On a yearly basis, U.S. CPI inflation came in at 2.7%, slightly below the expected 2.8%.
The dollar index slipped below the 98 mark after the U.S. inflation data, supporting gold and silver prices. As of today, the U.S. Dollar Index (DXY) was hovering near 97.97, down 0.13 points or 0.13%.“However, the tussle between the U.S. President and the Fed Chairman is increasing volatility in the bullion markets. We expect gold and silver prices to remain volatile this week amid U.S. tariff uncertainty, key U.S. economic data releases, and the upcoming meeting between the U.S. and Russian Presidents. Gold is expected to trade in the range of $3,340–$3,540 per troy ounce, while silver is expected to move between $36.80 and $40.00 per troy ounce this week,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 99,850-99,475 and resistance at Rs 1,01,440-1,01,750
- Silver has support at Rs 1,13,000-1,12,200 and resistance at Rs 1,14,400-1,15,115
Jain suggests buying silver on dips around the Rs 1,13,000-1,12,500 range with a stop loss of Rs 1,11,400 for a target of Rs 1,14,400-1,15,100.
Gold rates in physical markets
Gold price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,392/8 grams while pure gold (24 carat) prices stand at Rs 62,224/8 grams.
Gold price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,712/8 grams while pure gold (24 carat) prices stand at Rs 61,600/8 grams.
Gold price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 57,016/8 grams while pure gold (24 carat) prices stand at Rs 60,760/8 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 60,736/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)