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Gold Price Today: Yellow metal starts the month flat, silver down by Rs 1,000/kg

Gold October futures contracts at MCX opened flat on Monday at Rs 71,500 per 10 gram, which is down by 0.16% or Rs 111 while silver December futures contracts were trading at Rs 84,190/kg, down by 1.2% or Rs 1,020.

On Friday, gold and silver settled on a weaker note in the domestic and international markets. Gold October futures contract settled at Rs 71,611 per 10 grams with a loss of 0.80% and silver December futures contract settled at Rs 85,210 per kilogram with a loss of 2.11%.

Gold and silver showed profit taking from their highs after the U.S. data suggests that less aggressive Fed rate cut possibilities. The U.S. second quarter GDP was revised upward from 2.8% to 3.0% and the consumer spending also surged by 0.5%.

The core PCE price index data was also mostly inline expectations and supported the dollar index and the U.S. 10-year bond yields. The dollar index recovered from 13-month lows and crossed 101 marks once again and limited gains of precious metals.

Today, the US Dollar Index, DXY, was hovering near the 101.69 mark, falling 0.01 or 0.01%.“Gold prices slipped from record highs and silver prices are also unable to sustain above $30 per troy ounce levels. However, geo-political tensions and record investment demands are supporting prices of precious metals. We expect gold and silver prices to remain volatile in this week amid volatility in the dollar index and ahead of the U.S. job data but it could hold its key support level of $2,464 per troy ounce and $28.20 per troy ounce respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvi Finmart Commodity Research.Ranges for gold and silver by Manoj Kumar Jain:

  • At MCX, gold is having support at 71,400-71,180 and resistance at 71,850-72,040.
  • Silver has support at 84,450-83,700 and resistance at 85,800-86,350.

“We suggest buying gold on dips around 71,350 with a stop loss of 71,100 for the target of 72,000,” Jain added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)