Gold prices dip for 2nd session as traders eye US inflation data. Are analysts predicting a reversal?
Silver December futures on the MCX were also trading slightly weak at Rs 1,25,026/kg. This was down by Rs 154 or 0.12%..
On Wednesday, gold and silver settled on a mixed note in the domestic and international markets. Gold October futures contract settled at Rs 1,08,986 per 10 grams with a loss of 0.04% while silver December futures contract settled at Rs 1,25,180 per kilogram with a gain of 0.58%.
Gold and silver traded steadily and settled on a mixed note after the U.S. PPI data cooled off more than expected. The U.S. PPI unexpectedly fell by 0.1% in August, after it was downwardly revised by 0.7% in July and well below the expected gain of 0.3%.
On a yearly basis, PPI rose 2.6% in August against a July reading of 3.1% and well below the expected reading of 3.3%.
“Cool-off in the U.S. PPI data supported gold and silver prices, but the market is broadly waiting for the CPI data which will be further directional for both precious metals. Geo-political tensions, central banks buying, and Fed rate cut hopes are supporting prices of gold and silver,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 97.82 mark, gaining 0.04%.“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geopolitical tensions and ahead of the U.S. inflation data and gold is expected to trade in the range of $3,510-3,770 per troy ounce and silver is expected to trade in the range of $39.10-44.00 per troy ounce this week,” he added.
Echoing the same sentiment, Rahul Kalantri, VP Commodities at Mehta Equities, noted, “The U.S. PPI unexpectedly contracted by 0.1% in August. Cool-off in the U.S. PPI data supported gold and silver prices, but the market is broadly waiting for the CPI data which will be further directional for both precious metals. Geopolitical tensions, central banks buying, and Fed rate cut hopes are supporting prices of gold and silver.”
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,08,550-1,08,000 and resistance at Rs 1,09,440-1,10,000
- Silver has support at Rs 1,24,400-1,23,500 and resistance at Rs 1,26,300-1,27,000
Jain suggests booking profits in long positions of gold ahead of the U.S. inflation data and also suggests buying silver around Rs 1,24,600 with a stop loss below Rs 1,23,500 for a target of Rs 1,25,700-1,26,600.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,192/8 grams while pure gold (24 carat) prices stand at Rs 62,104/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,536/8 grams while pure gold (24 carat) prices stand at Rs 61,304/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,976/8 grams while pure gold (24 carat) prices stand at Rs 60,704/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,992/8 grams while pure gold (24 carat) prices stand at Rs 60,768/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)