Meanwhile, silver September futures contracts opened on a flat note with a negative bias, down by Rs 85 or 0.08% at Rs 1,07,900/kg. In the last 2 weeks too, the prices of the white metal have remained flat, going down by just Rs 70.
On Tuesday, gold and silver settled on a weaker note in the domestic and international markets. Gold August futures contract settled at Rs 96,472 per 10 grams with a loss of 0.82% and silver September futures contract settled at Rs 1,07,985 per kilogram with a loss of 0.31%.
Gold and silver plunged in a highly volatile session due to long unwinding by traders ahead of the FOMC meeting minutes and Trump tariff fears. Traders booked profits in long positions ahead of the Fed’s June meeting minutes.
The U.S. President imposed a 25% trade tariff on Japan and South Korea and also sent letters to dozens of countries to impose trade tariffs if a trade deal is not executed. However, he extended the tariff deadline until 1st August to make a trade deal.
“Trump’s tariff threats supported the dollar index and eased some safe haven buying for precious metals. However, the Chinese central bank’s signal for further gold buying and de-dollarization process could continue to support gold prices,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 97.69 mark, gaining 0.17 or 0.18%.“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and FOMC meeting minutes, but gold prices could hold their support level of $3,240 per troy ounce and silver prices could also hold $35.40 per troy ounce levels on a weekly closing basis,” he added.
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 96,000-95,550 and resistance at Rs 96,850-97,200
- Silver has support at Rs 1,07,200-1,06,650 and resistance at Rs 1,08,850-1,09,500
Jain suggests buying silver on dips around Rs 1,07,400 with a stop loss of Rs 1,06,650 on a closing basis for a target of Rs 1,08,800-1,09,400.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,624/8 grams while pure gold (24 carat) prices stand at Rs 61,464/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 58,024/8 grams while pure gold (24 carat) prices stand at Rs 61,848/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 56,968/8 grams while pure gold (24 carat) prices stand at Rs 60,664/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 56,744/8 grams while pure gold (24 carat) prices stand at Rs 60,528/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
