Gold and silver prices were volatile in early deals on Monday, 10 August, as investors assessed mixed signals from the Middle East, while an uptick in the US dollar amid a rise in crude oil prices also weighed on precious metals.
MCX gold October futures were flat at ₹1,51,870 per 10 grams, while MCX silver September futures were 0.90% up at ₹2,33,532 per kg around 9:10 AM.
The dollar index inched up by 0.20%, making greenback-denominated bullion slightly expensive for buyers in other currencies.
Crude oil prices jumped by 1% to trade above $84 per barrel due to persistent uncertainty over the reopening of the Strait of Hormuz. As per reports, Iran said negotiations with Oman on establishing new shipping routes were nearing completion, but reiterated that the US must meet additional conditions before the waterway is reopened.
The US-Iran conflict remains the biggest driver of gold prices, as it can keep oil prices high, intensify inflationary pressures, and prompt interest rate hikes by the US Federal Reserve.
While a deal between Iran and Oman could be close, tensions in the region are still simmering. As per reports, a Yemeni military spokesperson on 9 August (local time) said that Iran-backed Houthis have resumed attacks on the Red Sea port city of Mocha.
On the other hand, US President Donald Trump on Sunday said that Washington is adopting a “low-key” approach towards Iran and is not currently looking to launch a fresh military offensive.
Aside from the Middle East conflict, investors’ focus is also on key US macro prints this week, including the Consumer Price Index (CPI) on Wednesday and the Producer Price Index (PPI) on Thursday, for fresh cues on the US Fed’s interest rate trajectory.
Meanwhile, Bureau of Labor Statistics data showed on Friday that nonfarm payrolls decreased 23,000 last month following a combined 1,03,000 downward revision to the May and June figures.
Gold and silver prices: Key levels to watch
Ravi Singh, Chief Research Officer from Master Capital Services, pointed out that MCX gold futures continue to exhibit strong bullish momentum, with prices decisively climbing above the ₹1,50,000 mark and sustaining the recent breakout.
As per Singh, the yellow metal is now likely to move towards the ₹1,54,000 resistance zone, while a sustained breakout above this level could trigger further upside towards ₹1,58,000. On the downside, ₹1,46,500 remains the crucial support.
“As long as prices hold above this level, the overall trend remains positive, and the strategy continues to be buy on dips,” said Singh.
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, MCX gold may decline amid profit-booking in global markets. For Monday, ₹1,51,000 is support, while ₹1,52,500 is resistance.
As per Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,355 and $4,320 and resistance at $4,440 and $4,500 per troy ounce, and silver has support at $62.40 and $61.60, while resistance is at $65.20 and $67 per troy ounce in today’s session.
On the MCX, Jain said gold has support at ₹1,50,500 and ₹1,49,100, and resistance at ₹1,53,650 and ₹1,55,000, while silver has support at ₹2,29,200 and ₹2,27,000, and resistance at ₹2,34,400 and ₹2,38,000.
“We suggest buying gold on dips around ₹1,51,000 and ₹1,50,000 with a stop loss below ₹1,48,800 for the target of ₹1,53,000 and ₹1,54,400, and buying silver around ₹2,29,000 and ₹2,27,000 with a stop loss below ₹2,24,000 for the target of ₹2,34,400 to ₹2,38,000,” said Jain.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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