On the Multi-Commodity Exchange (MCX), gold futures traded at Rs 1,18,864 per 10 gram in December, down Rs 2,093 or 1.73%. Silver futures for December also fell to Rs 1,41,550 per kilogram, down Rs 1,817 or 1.27%.
Both metals remained weak in domestic and international markets on Monday. The gold December futures contract settled at Rs 1,20,957 per 10 gram with a loss of 2.02% and the silver December futures contract settled at Rs 1,43,367 per kilogram with a loss of 2.78%.
Gold and silver continued their decline as trade tensions between the US and China eased. The U.S. and Chinese presidents will meet later this week to finalize a trade deal and facilitate safe-haven purchases of precious metals.
“Gold and silver are also struggling amid the huge stretch of retreat from traders and investors ahead of the Fed’s monetary policy meetings,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
However, he believes that the US shutdown, hopes for Fed rate cuts and weakness in the dollar index could support gold and silver prices at lower levels. Today, the US Dollar Index, DXY, hovered around 98.69 and fell 0.09%. “Gold prices fell below $4,000 during intraday trading in the Comex division but held these levels at close,” he added.
“We expect gold and silver prices to remain volatile this week amid dollar index volatility ahead of the Fed’s monetary policy meeting and possible meetings with the US and Chinese presidents. Gold prices are expected to trade between $3,940 and 4,280 per troy ounce. Silver is expected to trade between $46.00 and 51.50 per troy ounce this week traded,” said Jain.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 1,20,000-1,18,800 and resistance at Rs 1,21,740-1,22,650
- Silver has support at Rs 1,41,400-1,39,800 and resistance at Rs 1,45,000-1,46,650
Jain suggests avoiding fresh short positions in gold and silver at current levels as the market is in an oversold zone and some recovery is possible in today’s session.
Gold rates in physical markets
Gold Price Today in Delhi
The standard gold price (22 carat) in Delhi is Rs 91,480/8 gram, while the price of pure gold (24 carat) is Rs 98,368/8 gram.
Gold Price Today in Mumbai
The standard gold price (22 carat) in Mumbai is Rs 90,432/8 gram, while the price of pure gold (24 carat) is Rs 97,200/8 gram.
Gold Price Today in Chennai
The standard gold price (22 carat) in Chennai is Rs 90,072/8 gram, while the price of pure gold (24 carat) is Rs 96,840/8 gram.
Gold Price Today in Hyderabad
The standard gold price (22 carat) in Hyderabad is Rs 90,344/8 gram, while the price of pure gold (24 carat) is Rs 97,192/8 gram.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)
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