Gold and Silver Prices Remain Steady
After weaker-than-expected U.S. jobs data resulted in a weakened U.S. dollar, Gold and Silver prices on MCX opened flat on Tuesday. Gold June futures contracts were down by Rs 19 or 0.03% to trade at Rs 71,350 per 10 grams, while MCX July silver contracts fell by Rs 72 or 0.09% to Rs 82,883 per kg.
Insight: The Impact of U.S. Dollar Weakening on Precious Metals
The decline in the U.S. dollar following the disappointing jobs data has been a key driver for the stability in Gold and Silver prices. Precious metals often have an inverse relationship with the dollar, as a weaker dollar makes gold and silver cheaper for holders of other currencies, leading to increased demand.
Positive Momentum in Precious Metals Market
Yesterday, gold prices saw a significant increase of 0.99% and closed at 71369 levels, while silver prices also rose by 2.36% and closed at 82955 levels. The World Gold Council reports that central banks globally have been buying gold, with total purchases reaching 290 tonnes in the first quarter of this year, indicating strong demand for the precious metal.
Insight: Influence of Festive Season on Gold Prices in India
The upcoming auspicious festival of Akshaya Tritiya in India is contributing to the supportive environment for gold prices, as demand tends to surge during such festive periods, further bolstering the outlook for gold in the market.
Gold and Silver Outlook in the U.S. Market
In the U.S., spot gold saw a 1% increase to $2,324.94 per ounce, while U.S. gold futures for June delivery settled 0.9% higher at $2,331.2 per ounce. This positive momentum is reflective of the strong demand for precious metals amidst the current economic conditions.
Forecast for Gold and Silver Prices
Anuj Gupta, head of Commodity & Currency at HDFC Securities, anticipates that gold and silver prices may continue to move towards the positive side due to sustained demand and the weakness in the dollar. Gold is projected to test levels between $2045 to $2050, while silver may test $28 levels in the near future.
Range Projection for MCX Gold and Silver
Rahul Kalantri, VP Commodities at Mehta Equities, suggests the following range projections for MCX Gold and Silver:
– Gold: Support at Rs 71,120 and 70,880, with resistance at Rs 71,540 and 71,720
– Silver: Support at Rs 82,340-81,780, with resistance at Rs 83,840 and 84,380
It is important to note that the recommendations and opinions provided by experts are based on their own analysis and do not necessarily reflect the views of Economic Times.
