In this week so far, Gold prices have fallen by Rs 3,400/10 grams while silver prices fell by Rs 3,200/kg in the same period.
On Wednesday, gold and silver were on a weaker note in the domestic and international markets. Gold December futures contract settled at Rs 74,482 per 10 grams with a loss of 0.56% and silver December futures contract settled at Rs 89,197 per kilogram with a loss of 0.15%.
Gold and silver extended its fall amid an unstoppable rally in the U.S. dollar and crypto currencies. The U.S. 10-year bond yields also crossed 4.40% levels and made investors away from the precious metals.
The dollar index crossed 106 marks and tested nearly one year highs after Donald Trump’s win in the U.S. Presidential elections. Today, the US Dollar Index, DXY, was hovering near the 106.61 mark, gaining 0.13 or 0.12%.
Bitcoin crossed $93,000 a coin for the first time. Investor’s craziness towards crypto is limiting buying interest in gold and silver. Also read: Bitcoin briefly tops $93,000 on Trump agenda, Fed policy outlook
The US CPI inflation data released on Wednesday was inline expectations as CPI inflation came up at 2.6% year on year in October month from the previous reading of 2.4%. The core CPI was also inline expectations. CPI inflation came little up but at acceptable levels and not problematic for the U.S. Fed to affect its monetary easing decisions.
“We expect gold and silver prices to remain to remain weak amid strength in the dollar index, US bond yields and crypto rally and could test $2,550 and $30.00 per troy ounce levels respectively in the short term,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Ranges for gold and silver by Manoj Kumar Jain:
- At MCX, gold has support at Rs 74,180-73,850 and resistance at Rs 74,720-75,000.
- Silver has support at Rs 88,500-87,750 and resistance at Rs 90,000-90,650.
Jain suggests staying away from the gold and silver in today’s session and wait for some stability in the markets.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 58,312/8 grams while pure gold (24 carat) prices stand at Rs 62,216/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,136/8 grams while pure gold (24 carat) prices stand at Rs 60,904/8 grams.
Gold Price today in Kolkata
Standard gold (22 carat) prices in Kolkata stand at Rs 57,704/8 grams while pure gold (24 carat) prices stand at Rs 61,584/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
