Gold and silver prices were down on the MCX on Tuesday morning amid an uptick in the US dollar and bond yields, ahead of US inflation data and the Jackson Hole Symposium this week.
MCX gold October contracts were 0.14% down at ₹1,62,999 per 10 grams, while MCX silver September futures were 0.55% down at ₹2,42,880 per kg around 9:35 AM.
The dollar index has been in the green for three consecutive sessions, weighing on gold’s appeal. The US 10-year and 30-year bond yields also climbed as concerns over inflation and piling US debt triggered a selloff in long-dated debt.
The focus is on the US Personal Consumption Expenditures (PCE) price index, the US Fed’s preferred inflation gauge, due on Wednesday, and on Chair Kevin Warsh’s first speech at the Jackson Hole Symposium on Friday, for cues on the interest rate trajectory.
The US-Iran conflict appears far from getting over. Washington has increased economic pressure on Iran and its trading partners. Iran, on the other hand, warned that Washington’s new sanctions on Tehran, announced Monday, will not bring peace to the region.
Oil prices rose by nearly 1% to trade near $93 per barrel amid persistent uncertainty over the reopening of the Strait of Hormuz.
Gold and silver prices outlook
As per Ravi Singh, Chief Research Officer at Master Capital Services, MCX gold prices are now approaching the next resistance near ₹1,67,000, while ₹1,60,000 has emerged as the crucial support.
“As long as prices remain above this level, the bullish momentum is expected to remain intact, and the buy-on-dips strategy continues to be preferred. The strong technical setup is supported by international gold, which has climbed to a three-month high, gaining more than 7% over the past four sessions and moving firmly above the $4,600 level,” said Singh.
Manoj Kumar Jain of Prithvifinmart Commodity Research said international gold has support at $4,665 and $4,610, while resistance is at $4,740 and $4,770 per troy ounce, and silver has support at $67.70 and $66.60, while resistance is at $69.80 and $71 per troy ounce in today’s session.
MCX gold has support at ₹1,62,200 and ₹1,61,000, and resistance is at ₹1,64,000 and ₹1,65,150, while silver has support at ₹2,41,400 and ₹2,39,100 and resistance at ₹2,47,000 and ₹2,50,000.
“We have suggested buying in silver around ₹2,44,000 and ₹2,41,000 on Monday with a stop loss below ₹2,37,000 for the target of ₹2,49,000 and ₹2,52,500. Those who have taken long positions as per the recommendations are advised to maintain the specified stop-loss and book profits around the target levels. We also suggest buying gold on dips around ₹1,62,200 and ₹1,61,000 range with a stop loss below ₹1,59,800 for the target of ₹1,64,000 and ₹1,65,000,” 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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