Internationally, gold prices fell slightly in early Asian trading from a nearly three-week high as investors booked profits amid growing expectations of a US interest rate cut later this month, while silver hit a record high.Spot gold fell 0.2% to $4,221.68 an ounce as of 01:09 GMT, after hitting its highest level since November 13 on Friday. U.S. gold futures for December rose 0.2% to $4,261.60 an ounce. Meanwhile, silver climbed 2.2% to a new high of $57.59 an ounce.
On Friday, gold and silver closed higher in both the domestic and international markets. The gold February futures contract settled at Rs 1,29,504 per 10 gram, up 1.44%, while the silver March futures contract ended at Rs 1,74,981 per kilogram, up 5.42%.
Gold prices hit a five-week high and silver rose to record levels amid expectations of a US Federal Reserve rate cut and profit-taking on the dollar index. “Safe haven buying in precious metals also emerged after trading in the CME was halted due to overheating in the data center,” said Manoj Kumar Jain of Prithvifinmart Commodity Research. A weaker rupee, which fell to a record low against the US dollar, also supported domestic gold and silver prices. The US Dollar Index (DXY) hovered around 99.47 on Friday, up 0.01 or 0.01%.
“However, optimism over a Russia-Ukraine peace deal limited gains in precious metals,” Jain added.
Despite the market volatility, he expects gold to maintain 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 warned: “We expect gold and silver prices to remain volatile this week amid swings 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 Rs 1,28,200–1,27,700 | Resistance at Rs 1,30,300–1,31,200
Silver: Support 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 and Rs 1,71,000 with a stop loss of less than Rs 1,69,600 for a target of Rs 1,78,800 to Rs 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 carats) 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 carats) Rs 94,576/8 grams | Pure gold (24 carat) Rs 1,01,768/8 grams
(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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