The prices of gold have surged by Rs 2,400/10 grams in the last one month while silver prices have gained Rs 3,700/kg in the same period.
On Monday, gold and silver settled on a weaker note in the domestic market and on a mixed note in the international markets. Gold February futures contract settled at Rs 78,544 per 10 grams with a loss of 0.61% and silver March futures contract settled at Rs 91,442 per kilogram with a loss of 0.17%.
Gold and silver showed very high volatility amid US President Donald Trump’s inaugural speech. He retreated from imposing tariffs on various nations and also reversed many policies of the Biden administration.
After the Israel-Hamas ceasefire deal, the possibility of a ceasefire between Russia and Ukraine eased safe-haven demand for precious metals.
Gold prices slipped from 1-month highs but silver traded steady in the international markets. Profit taking in the dollar index and US bond yields supported prices of precious metals at lower levels.“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and Trump administration policy announcements,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 108.19 mark, falling 1.16 or 1.06%.
Disappointed with the delay in tariffs and signs of ease in the geo-political tensions, the dollar index fell yesterday by more than 100 bps.
“Market participants now will keep an eye on any updates from President Trump and officials at Davos which could trigger volatility in the market. The US market also resumes from a holiday, which could also provide swings in the market,” believes Manav Modi, Analyst, Commodity Research at Motilal Oswal.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 78,300-78,080 and resistance at Rs 78,800-79,000.
- Silver has support at Rs 90,750-90,200 and resistance at Rs 92,000-92,650.
Jain suggests buying silver around Rs 91,100 with a stop loss of Rs 90,450 for a target of Rs 92,400.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,376/8 grams while pure gold (24 carat) prices stand at Rs 62,2328 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 56,656/8 grams while pure gold (24 carat) prices stand at Rs 60,416/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,920/8 grams while pure gold (24 carat) prices stand at Rs 60,656/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,840/8 grams while pure gold (24 carat) prices stand at Rs 60,608/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
