Silver prices touch an all-time high, gold follows with a Rs 900/10 gm rally
Gold and silver prices opened strongly in the domestic futures market on Monday. Gold February futures traded at Rs 1,30,383 per 10 grams, up Rs 879 or 0.68%, while silver March futures surged to a new peak of Rs 1,78,620 per kg, gaining Rs 3,639 in early trade.
The rally was driven by a softening dollar, expectations of a U.S. Federal Reserve rate cut, and a weaker rupee, which touched a record low against the dollar.
On the international front, gold prices slipped slightly in early Asian trade from a near three-week high, as investors booked profits amid growing expectations of a U.S. rate cut later this month, while silver hit a record high.
Spot gold was down 0.2% at $4,221.68 per ounce as of 0109 GMT, after reaching its highest level since November 13 on Friday. U.S. gold futures for December delivery rose 0.2% to $4,261.60 per ounce. Meanwhile, silver climbed 2.2% to a fresh high of $57.59 per ounce.
On Friday, gold and silver closed higher in both domestic and international markets. The gold February futures contract settled at Rs 1,29,504 per 10 grams, up 1.44%, while the silver March futures contract ended at Rs 1,74,981 per kilogram, gaining 5.42%.
Gold prices hit five-week highs, and silver surged to record levels amid expectations of a U.S. Federal Reserve rate cut and profit-taking in the dollar index.“Safe-haven buying also emerged for precious metals after trading was halted in the CME due to overheating at its data center,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.A weaker rupee, which slipped to a record low against the U.S. dollar, also supported domestic gold and silver prices. The U.S. Dollar Index (DXY) hovered near 99.47, up 0.01 or 0.01% on Friday.
“However, optimism over a Russia-Ukraine peace deal limited gains in precious metals,” Jain added.
Despite market volatility, he expects gold to hold its key level of $4,000 per troy ounce, while silver could maintain its support level of $52.40 per troy ounce in international markets.
He further cautioned, “We expect gold and silver prices to remain volatile this week amid fluctuations in the dollar index, global financial markets, and ahead of the Fed’s monetary policy meetings.”
How to trade gold
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
Gold: Support at Rs 1,28,200–1,27,700 | Resistance at Rs 1,30,300–1,31,200
Silver: Support at Rs 1,72,500–1,69,600 | Resistance at Rs 1,78,800–1,81,000
He recommends buying gold between Rs 1,29,500–1,28,800 with a stop loss below Rs 1,28,100 for a target of Rs 1,30,300–1,31,200. For silver, he suggests buying between Rs 1,74,000–1,71,000 with a stop loss below Rs 1,69,600 for a target of Rs 1,78,800–1,81,000.
Gold rates in physical markets
Delhi: Standard gold (22 carat) Rs 94,928/8 grams | Pure gold (24 carat) Rs 1,02,176/8 grams
Mumbai: Standard gold (22 carat) Rs 94,944/8 grams | Pure gold (24 carat) Rs 1,02,192/8 grams
Chennai: Standard gold (22 carat) Rs 94,400/8 grams | Pure gold (24 carat) Rs 1,01,560/8 grams
Hyderabad: Standard gold (22 carat) Rs 94,576/8 grams | Pure gold (24 carat) Rs 1,01,768/8 grams
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)