Gold and silver prices on the Multi Commodity Exchange of India opened lower on Thursday, following weakness in international bullion prices amid a strong US dollar.
MCX gold rate today for April contracts expiry opened 0.47% lower at ₹1,58,000 per 10 grams level as against its previous close of ₹1,58,755 level. It touched a low of ₹1,57,701 level. MCX gold price was trading lower by ₹676, or 0.43, at ₹1,58,079 per 10 grams.
MCX silver price for March contracts expiry opened lower by ₹1,657, or 0.63%, at ₹2,61,361 per kilogram as against its previous close of ₹2,63,018 level. The white metal hit an intraday low of 260453, falling nearly 1%. MCX silver rate was trading lower by ₹1,950, or 0.74%, at ₹2,61,068 per kg.
In the international market, gold and silver fell as the US dollar firmed after stronger-than-expected January jobs data dented expectation for near-term interest rate cuts by the US Federal Reserve.
Spot gold price fell 0.4% to $5,058.64 per ounce after rising more than 1% in the previous session. US gold futures for April delivery lost 0.3% to $5,080.0 per ounce. Spot silver price declined 1.4% to $82.87 per ounce, after a 4% climb on Wednesday.
“Gold fell to around $5,050 per ounce trimming gains from the previous session as investors pared back expectations for the US Fed policy easing. Despite the decline, gold remained above $5,000 an ounce, having recovered about half of the sharp 13% drop recorded in two sessions earlier this month. Prices also continued to draw support from steady central bank demand and persistent geopolitical uncertainties,” said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
He also noted that silver and other precious metals continued to draw support from safe-haven demand and the so-called debasement trade, as investors hedge against currency erosion and mounting sovereign debt burdens.
Meanwhile, the US dollar index extended rally after the surprisingly strong employment report that suggested underlying US economic health. A stronger dollar makes greenback-priced metals more expensive for other currency holders.
Investors now await the US inflation data due on Friday for more monetary policy cues.
Gold Price Outlook
According to Trivedi, MCX gold price for April futures is likely to stay range bound with negative undertone, with an intraday trading range of ₹1,57,000 to ₹1,60,000 zone.
“MCX silver price for March futures is likely to drop to ₹2,57,000 per kg as it is trading with the weak sentiment in the world markets,” said Trivedi.
Ajay Kedia, Director at Kedia Advisory, said gold prices are likely to find immediate support around the $5,000 level, with resistance seen near $5,120.
He noted that a short-term pullback cannot be ruled out after prices failed to sustain above the $5,100 mark. “A break below $5,080 could drag prices towards the $5,040 – $5,012 range, while resistance remains capped at $5,100,” Kedia said.
On the domestic front, he added that MCX gold price is expected to find support around ₹1,56,000, with resistance placed near ₹1,60,500.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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