Gold consolidates near higher levels, trades at Rs 94,812

Gold prices consolidate after some profit booking. The June futures contracts at MCX opened lower by Rs 180 or 0.19% at Rs 94,812/10 grams on Monday, while silver May futures contracts were down by Rs 641 or 0.66% at Rs 95,800/kg.

On Friday, gold and silver settled on a weaker note in the domestic and international markets. Gold June futures contract settled at Rs 94,992 per 10 grams with a loss of 0.96%, and silver May futures contract settled at Rs 96,441 per kilogram with a loss of 1.10%.

Gold and silver showed profit taking from their highs last week after U.S. President Trump said to reduce trade tariffs substantially on Chinese goods imports. Gold prices dropped more than 6% from their all-time highs, and silver prices also corrected amid a rebound in the dollar index.

“Global equity markets also gained amid US-China trade deal hopes and eases safe-haven demand for precious metals. However, geo-political tensions and central banks buying in gold due to global uncertainty could support prices,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Today, the US Dollar Index, DXY, was hovering near the 99.64 mark, gaining 0.17 or 0.17%.

“Silver prices also corrected, but if the US-China trade deal executes, then it will support the prices of silver. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the key U.S. economic data; gold prices could test their support level of $3,200 per troy ounce, and silver prices could also test $31.80 per troy ounce levels,” he said.

Ranges for gold and silver by Manoj Kumar Jain:

• At MCX, gold has support at Rs 94,400-93,660 and resistance at Rs 95,500-96,040
  
• Silver has support at Rs 95,800-95,150 and resistance at Rs 97,000-97,750.
  

Jain suggests selling gold on rise around Rs 96,200 with a stop loss of Rs 96,850 for a target of Rs 94,400.

Gold rates in physical markets


Gold Price today in Delhi


Standard gold (22 carat) prices in Delhi stand at Rs 57,512/8 grams while pure gold (24 carat) prices stand at Rs 61,352/8 grams.

Gold Price today in Mumbai


Standard gold (22 carat) prices in Mumbai stand at Rs 57,584/8 grams while pure gold (24 carat) prices stand at Rs 61,336/8 grams.

Gold Price today in Chennai


Standard gold (22 carat) prices in Chennai stand at Rs 56,984/8 grams while pure gold (24 carat) prices stand at Rs 60,688/8 grams.

Gold Price today in Hyderabad


Standard gold (22 carat) prices in Hyderabad stand at Rs 57,024/8 grams while pure gold (24 carat) prices stand at Rs 60,840/8 grams.

( Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)