Gold prices rally to 3-week high; silver hits new peak above Rs 1.17 lakh/kg. Should you buy?
Silver prices on MCX hit a peak of Rs 1,17,117/kg on Friday.
Gold climbed to a 3-week high and silver to a 5-week high in global markets. In India, silver hit a lifetime peak, closing above Rs 1,17,000 for the first time.
On Thursday, the precious metals settled on a positive note in the domestic market and on a slightly weaker note globally. Gold October futures contract ended at Rs 1,02,100 per 10 grams with a gain of 0.55% whereas the silver September futures contract settled at Rs 1,17,174 per kilogram, a gain of 0.93%.
“The U.S. trade tariff uncertainty and geopolitical tensions are supporting safe-haven buying for precious metals. The U.S. GDP data released on Thursday was better than expected and came up at 3.3% against the expected reading of 3.1%. Jobless claims also dropped to 2,29,000 but market digested the upbeat U.S. data,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Jain added that gold prices crossed $3,454 and silver prices also crossed $39.10 per troy ounce levels and could show further strength in the upcoming sessions.On Friday, the US Dollar Index, DXY, was hovering near the 97.99 mark, gaining 0.17 or 0.18%.“We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index, volatility in the rupee and updates on the Russia-Ukraine peace deal. The yellow metal is expected to trade in the range of $3,434-3,510 per troy ounce and silver is expected to trade in the range of $38.50-39.80 per troy ounce in today’s session,” he added.
Echoing the same sentiment, Rahul Kalantri, VP Commodities at Mehta Equities, noted, “Bullion prices continued their upward momentum, with gold and silver advancing in international markets amid safe-haven buying and dollar index profit-taking. Gold touched its highest level in three weeks, while silver reached a five-week peak. Domestically, silver prices posted a historic high, closing above Rs 117,000 for the first time, signalling strong local demand.”
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,01,750-1,01,400 and resistance at Rs 1,02,550-1,02,800
- Silver has support at Rs 1,16,500-1,15,800 and resistance at Rs 1,18,000-1,18,850
Jain suggests buying silver on dips around Rs 1,16,500-1,16,000 with a stop loss of Rs 1,15,100 for a target of Rs 1,18,000-1,18,800.
Further, Rahul Kalantri noted that gold has support at Rs 1,01,740-1,01,540 while resistance is at Rs 1,02,450-1,02,650. Silver has support at Rs 1,16,150-1,15,350 while resistance is at Rs 1,17,750, 1,18,250.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,976/8 grams while pure gold (24 carat) prices stand at Rs 61,816/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,336/8 grams while pure gold (24 carat) prices stand at Rs 61,152/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,696/8 grams while pure gold (24 carat) prices stand at Rs 60,480/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,984/8 grams while pure gold (24 carat) prices stand at Rs 60,744/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)