Gold and Silver Futures Performance
Gold August futures contracts on the MCX opened at Rs 71,566 per 10 grams on Monday, showing a slight decrease of Rs 300 from the previous month, while silver July futures contracts opened at Rs 87,035/kg, down by 0.15% or Rs 132 compared to June.
Gold and silver traded steadily following the release of inline expected U.S. core PCE price index data. Both metals settled on a positive note on Friday in both the domestic and international markets.
Recent Performance and Outlook
Gold August futures contract settled at Rs 71,582 per 10 grams, showing a minor gain of 0.01%, while silver September futures contract settled at Rs 89,540 per kilogram with a gain of 0.43%. Despite significant price volatility, gold and silver maintained their key support levels on a monthly closing basis.
The Influence of the US Dollar
The US Dollar Index (DXY) was near the 105.60 mark, experiencing a slight decline of 0.26%. The U.S. core PCE price index data released last week was in line with market expectations, showing a 0.1% increase compared to the previous month’s 0.3%. This slight cooling off of inflation in the U.S. could potentially allow the U.S. Fed to consider cutting interest rates. The dollar index’s mild profit-taking from its highs also supported gold and silver prices.
Expert Insights
According to Manoj Kumar Jain of Prithvi Finmart Commodity Research, gold and silver prices are expected to remain volatile this week leading up to the U.S. Fed Chairman’s speech and the FOMC meeting minutes.
Intraday Trading Ranges
Manoj Kumar Jain provided the following intraday ranges for gold and silver at MCX:
– Gold: Support at 71,350-71,080 and resistance at 71,800-72,040
– Silver: Support at 89,100-88,550 and resistance at 90,200-90,800
Recommendations
Jain suggested buying gold on dips around 71,400 with a stop loss of 71,080 for a target of 71,850.
Insight on Market Trends
One additional insight to consider is the ongoing global economic uncertainties and geopolitical tensions, which could continue to impact the prices of gold and silver. Investors are closely monitoring these developments for potential shifts in market sentiment and precious metal prices.
