Gold and silver prices today: Rates of gold and silver jumped up to 1% in early deals on the MCX on Tuesday, 4 August, supported by hopes of a potential US-Iran peace deal.
MCX gold October contracts were 0.50% up at ₹1,43,607 per 10 grams, while MCX silver September futures were 1.11% up at ₹2,19,150 per kg around 9:05 AM.
International gold prices also rose amid mixed signals on potential U.S.-Iran talks. The US President Donald Trump on 2 August said talks with Iran would take place on Monday, which Iran later denied, saying there were currently no negotiations with the United States, but talks with Oman over the management of the strategic Strait of Hormuz.
Trump on Monday slammed the Iranian leadership, stating that Tehran officials asked for talks on ending the war only to announce that no discussions would be held.
The US-Iran conflict has driven up energy prices, stoking fears that inflation will remain at higher levels for longer, prompting interest rate hikes by major central banks to keep inflation under control.
Even though gold is considered a hedge against inflation, higher interest rates weigh on the yellow metal as it is a non-yielding asset.
The US Federal Reserve left interest rates unchanged at its July policy meeting, but expectations are rife that it may raise rates at its next meeting in September.
Gold and silver price outlook
“Going forward, the market’s focus will remain on the Federal Reserve’s policy outlook, which continues to be the key driver for bullion prices. Investors will also closely track this week’s US employment data, including the ADP employment change, non-farm payrolls, and unemployment rate, for fresh clues on the Fed’s interest rate path. Technically, MCX gold is expected to trade in the ₹1,42,000 to ₹1,45,000 range over the near term,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, gold has support at $4,064 and $4,030, while resistance is at $4,120 and $4,150 per troy ounce, and silver has support at $57 and $56.40, while resistance is at $59.50 and $60.20 per troy ounce in today’s session.
For MCX gold, Jain sees support at ₹1,42,200 and ₹1,41,400, and resistance at ₹1,43,650 and ₹1,44,500, while silver has support at ₹2,15,000 and ₹2,13,3300 and resistance at ₹2,18,800 and ₹2,21,000.
We have suggested buying gold on Monday at around ₹1,42,800 with a stop-loss below ₹1,41,800 for a target of ₹1,44,550, and also suggest buying silver at around ₹2,16,000 with a stop-loss below ₹2,13,300 for a target of ₹2,21,000. Those holding long positions in gold and silver as per the given recommendations are suggested to strictly maintain the given stop loss and book profits around the suggested targets,” 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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