Gold prices open above Rs 1.28 lakh to trade near 2-week highs, silver up 1%. What should investors eye next?
Gold prices opened with a sharp upside on Friday, with the MCX February futures climbing to Rs 1,28,313 per 10 grams, gaining Rs 646 or 0.51% from the previous close. The yellow metal is now trading near its two-week highs, buoyed by sustained optimism around U.S. Fed rate cuts and a softer dollar.
Further, silver futures for March also rallied, rising by Rs 1,639 or nearly 1% to Rs 1,67,626 per kg, hinting at bullish undertones in the broader precious metals space.
On Thursday, gold and silver settled on a mixed note in the domestic and international markets. Gold February futures contract settled at Rs 1,27,667 per 10 grams with a loss of 0.08% while silver March futures contract settled at Rs 1,65,987 per kilogram with a gain of 0.63%.
Gold and silver traded steadily and settled on a mixed note in the international markets due to the holiday in the U.S. markets on account of Thanksgiving Day.
The U.S.-led Russia-Ukraine peace deal optimism is limiting gains of precious metals, but Fed rate cuts optimism and profit taking in the dollar index are supporting prices. Today, the US Dollar Index, DXY, was hovering near the 99.62 mark, gaining 0.05, or 0.05%.
“Three more cuts are expected before the end of 2026, and markets currently price in an 85% chance of a 25-bps cut in December, a significant increase from approximately 30% a week ago,” noted Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd., President of India Bullion and Jewellers Association and Chairman at Jain International Trade Organisation.The U.S. 10-year bond yields slipped to 1-month lows and also supporting prices of both precious metals.“Despite market volatilities, gold is expected to hold its make-or-break level of $3,910 per troy ounce and silver could also hold its key support level of $48.40 per troy ounce in the international markets,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
“We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index, volatility in the global financial markets and ahead of the key European economic data and gold are expected to trade in the range of $4,134-4,240 per troy ounce and silver is expected to trade in the range of $52.00-54.20 per troy ounce in today’s session,” he added.
Meanwhile, Kothari, for gold prices, believes, “Prices would need a solid trigger for prices to climb above $4200. If it does, the next resistance would be $4245 (~Rs 127,800). If it doesn’t, then prices can fall back to $4100 (~Rs 123,000).”
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,27,100-1,26,600 and resistance at Rs 1,28,200-1,29,000
- Silver has support at Rs 1,64,400-1,63,500 and resistance at Rs 1,67,700-1,70,000
Jain suggests buying gold in the range of Rs 1,27,200-1,26,600 with a stop loss below Rs 1,26,000 for the targets of Rs 1,28,200-1,29,000. He further suggests buying silver in the range of Rs 1,65,500-1,64,000 with a stop loss below Rs 1,62,500 for the targets of Rs 1,67,700-1,70,000.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 95,016/8 grams while pure gold (24 carat) prices stand at Rs 1,02,248/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 93,888/8 grams while pure gold (24 carat) prices stand at Rs 1,01,048/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 93,760/8 grams while pure gold (24 carat) prices stand at Rs 1,00,840/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 93,536/8 grams while pure gold (24 carat) prices stand at Rs 1,00,648/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)