Despite the dip, both precious metals remain firmly near their maximum lifespans, supported by expectations of US interest rate cuts, central bank purchases and steady demand for safe havens.
In international markets, gold prices fell as investors booked profits a day after the precious metal breached the crucial $4,000 per ounce mark, hitting a record high amid economic and geopolitical uncertainties and hopes of further US interest rate cuts.
Spot gold fell 0.4% to $4,021.99 an ounce as of 01:17 GMT, after hitting a record $4,059.05 on Wednesday.
US gold futures for December fell 0.7% to $4,042.60.
On Wednesday, both gold and silver ended higher in the domestic and international markets. The December gold futures contract settled at Rs 1,23,209 per 10 gram, up 1.73%, while the December silver futures closed at Rs 1,49,855 per kilogram, up 2.79%. Gold and silver posted significant gains in a highly volatile session. Gold prices exceeded $4,050 per troy ounce for the first time since 2011, while silver exceeded $49 per troy ounce for the first time since 2011. Robust central bank buying and a shift from global investors to safe-haven assets through ETFs continues to support prices. However, the minutes of the Fed meeting fueled uncertainty about aggressive rate cuts, and a stronger dollar limited further gains. “Some profit-taking in gold and silver is evident at current levels, but this can be seen as a buying opportunity from a longer-term perspective,” Manoj said.
Kumar Jain of Prithvifinmart Commodity Research.
He added: “We expect gold and silver to remain volatile this week amid swings in the dollar index and global market volatility. Gold is expected to trade between $3,910 and 4,140 per troy ounce, and silver between $45.90 and 50.00 per troy ounce.”
As of today, the US Dollar Index (DXY) was hovering around 98.72, down 0.20 points (0.20%).
How to Trade Gold and Silver (MCX)
Manoj Kumar Jain suggested the following support and resistance levels:
-Gold: Support Rs 1,22,400–1,21,650 | Resistance at Rs 1,24,000–1,24,800
-Silver: Support Rs 1,48,500–1,47,000 | Resistance at Rs 1,51,500–1,52,800
Jain recommends waiting for corrective dips to initiate new long positions in gold and silver, and avoiding short selling.
Gold rates in physical markets
-Delhi: Standard (22 carats) Rs 92,560/8g | Pure (24 carat) Rs 99,608/8g
Mumbai: Standard Rs 92,720/8g | Pure Rs 99,696/8g
-Chennai: Standard Rs 91,960/8g | Pure Rs 98,832/8g
-Hyderabad: Standard Rs 92,224/8g | Pure Rs 99,136/8g
(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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