Over the past week, gold prices have dropped by Rs 1,900 per 10 grams, while silver has seen a larger decline of Rs 4,900 per kg.
On Monday, gold and silver settled on a mixed note in the domestic and international markets. Gold February futures contract settled at Rs77,061 per 10 grams with a loss of 0.10% while silver March futures contract settled at Rs 91,183 per kilogram with a gain of 0.20%.
Gold and silver were traded in a tight range amid mixed U.S. economic data. The U.S. flash manufacturing PMI showed a reading of 58.5 against an expected reading of 55.7. The reading shows that activity in the service sector reached its highest level in three years.
The U.S. manufacturing sector continues to show contraction in December month and shows a reading of 48.3 against the expected reading of 49.4 and it hits three-month lows in December month. The U.S. Empire State manufacturing index also fell in December month of 0.2 against the previous month’s reading of 31.2.
“Bullion markets are waiting for fresh triggers and the FOMC meeting scheduled this week could be directional for the bullion markets,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 106.81 mark, falling 0.05 or 0.05%.“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index 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.,” Jain added.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 76,800-76,550 and resistance at Rs 77,330-77,600.
- Silver has support at Rs 90,450-89,600 and resistance at Rs 91,950-92,400.
Jain suggests buying silver on dips around Rs 90,750 with a stop loss of Rs 90,100 for the target of Rs 92,000.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,200/8 grams while pure gold (24 carat) prices stand at Rs 60,920/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 56,936/8 grams while pure gold (24 carat) prices stand at Rs 60,656/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 57,040/8 grams while pure gold (24 carat) prices stand at Rs 60,752/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,904/8 grams while pure gold (24 carat) prices stand at Rs 60,624/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
