Gold prices firm near Rs 1.24 lakh/10g, remain rangebound amid global uncertainty. Which way will it move next?
Gold prices traded higher at Rs 1,24,270 per 10 grams on the Multi-Commodity Exchange (MCX) for the 5th December contract, rising Rs 357 or 0.29% in early trade. The metal continues to trade within a volatile range as global cues remain mixed — with optimism over possible Fed rate easing and a weaker dollar index providing support, even as recent profit-booking and a rebound in equities capped gains.
Silver prices, too, opened strong at Rs 1,55,481 per kg, gaining Rs 794 or 0.51%, as traders await further cues from inflation data and global risk sentiment.
In the international market, gold prices rose for a fourth straight session on Wednesday, supported by a weaker dollar and expectations that the reopening of the U.S. government and flow of economic data will strengthen bets for a Federal Reserve interest rate cut next month.
Spot gold added 0.2% to $4,133.99 per ounce by 0155 GMT, after hitting its highest since October 23 on Tuesday. U.S. gold futures for December delivery rose 0.6% to $4,140.10 per ounce.
On Tuesday, gold and silver settled on mixed notes in both domestic and international markets. Gold December futures contract settled at Rs 1,23,913 per 10 grams with a loss of 0.05% while silver December futures contract settled at Rs 1,54,687 per kilogram with a gain of 0.65%.
Gold and silver showed very high volatility and extended their gains in early trading sessions, but profit-taking at higher levels erased earlier gains. Gold prices slipped from 3-week highs amid the possibility of an end to the U.S. government shutdown and a rebound in global equity markets.“However, possible Fed monetary policy easing and weakness in the dollar index could support gold and silver prices,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.“Gold holds its make are break level of $3,870 and crossed $4,100 per troy ounce, and silver also holds its key support level of $45.50 per troy ounce and crossed $50 per troy ounce levels and is showing strength,” he added.
The dollar index was hovering close to more than a one-week low, making gold more attractive for other currency holders. Today, the US Dollar Index, DXY, was hovering near the 99.50 mark, gaining 0.02 or 0.02%.
“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, volatility in the global financial markets, ahead of the U.S. inflation data and gold are expected to trade in the range of $3,960-4,220 per troy ounce and silver is expected to trade in the range of $47.00-52.50 per troy ounce this week,” Jain added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,22,800-1,22,000 and resistance at Rs 1,24,750-1,25,800
- Silver has support at Rs 1,53,200-1,52,000 and resistance at Rs 1,56,000-1,57,700
Jain suggests buying gold on dips around Rs 1,23,300 with a stop loss of Rs 1,22,500 for a target of Rs 1,25,000 and also suggests buying silver around Rs 1,53,800-1,53,000 with a stop loss of Rs 1,51,800 for a target of Rs 1,55,000-1,56,600.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 92,528/8 grams while pure gold (24 carat) prices stand at Rs 99,456/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 92,888/8 grams while pure gold (24 carat) prices stand at Rs 99,888/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 92,528/8 grams while pure gold (24 carat) prices stand at Rs 99,448/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 92,448/8 grams while pure gold (24 carat) prices stand at Rs 99,456/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)