Gold prices fell by Rs 1,900/ 10 grams in the last 3 days while silver prices fell by Rs 4,850/kg in the same period.
On Friday, gold and silver settled on a weaker note in the domestic and international markets. Gold February futures contract settled at Rs77,136 per 10 grams with a loss of 1.07% and silver March futures contract settled at Rs91,001 per kilogram with a loss of 1.76%.
Gold and silver saw follow-through selling on Friday after a hotter-than-expected U.S. PPI data released on Thursday. The U.S. PPI came up in November month at 3.0% which is exactly 1.0% higher than the U.S. Fed target inflation rate of 2.0%.
The U.S. economic data released last week were mixed and the U.S. Fed could cut interest rates in December policy meetings looking at the mixed U.S. economic data but further rate cuts in 2025 would be in doubt due to higher inflation. Bullion markets reacted negatively to the U.S. economic data.
However, geo-political tensions and Chinese stimulus hopes are supporting bullion prices at lower levels. “We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and FOMC meetings but it could hold its key support levels of $2,588 and $29.88 per troy ounce levels respectively on a weekly closing basis,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 105.88 mark, falling 0.13 or 0.12%.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 76,800-76,440 and resistance at Rs 77,450-77,720
- Silver has support at Rs 90,350-89,500 and resistance at Rs 91,800-92,650
Jain suggests waiting for some stability in the bullion markets for initiating fresh long positions; investors could add on every dip in a staggered way for long term investments.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 56,568/8 grams while pure gold (24 carat) prices stand at Rs 60,328/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,128/8 grams while pure gold (24 carat) prices stand at Rs 60,872/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,776/8 grams while pure gold (24 carat) prices stand at Rs 60,520/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,144/8 grams while pure gold (24 carat) prices stand at Rs 60,928/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
