Meanwhile, silver September futures contracts witnessed profit booking from higher levels, and were trading lower by Rs 570 or 0.5% at Rs 1,12,366/kg.
On Monday, gold and silver settled on a weaker note in the domestic and international markets. Gold August futures contract settled at Rs 97,775 per 10 grams with a loss of 0.04% and silver September futures contract settled at Rs 1,12,936 per kilogram with a loss of 0.06%.
Gold and silver exhibited high price volatility, initially gaining in the early trading session, but then slipped from their highs as the dollar index rebounded. Traders also booked profits in their long positions ahead of the U.S. inflation data.
Silver prices nearly hit a 14-year high in the international markets before prices cooled off.
U.S. President Donald Trump’s higher trade tariffs on Canada and Mexico are supporting silver prices. Gold is also holding its key support levels amid uncertainty in the global markets due to U.S. trade tariffs. The U.S. inflation data is set to be released later today and will be directional for the bullion markets.The U.S. President threatened to impose a 30% tariff on imports from Mexico and the European Union starting on August 1, after weeks of negotiations with the major U.S. trading partners failed to reach a trade deal.President Trump also renewed his attacks on Fed Chair Jerome Powell, saying interest rates should be at 1% or lower.
“We expect gold and silver prices to remain volatile this week amid volatility in the global financial markets and U.S. trade tariff uncertainty and gold prices could hold its support level of $3,280 per troy ounce and silver prices could also hold $36.40 per troy ounce levels on a weekly closing basis,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Today, the US Dollar Index, DXY, was hovering near the 98.04 mark, falling 0.05 or 0.05%.
Meanwhile, Rahul Kalantri, VP Commodities at Mehta Equities, said, “Today’s inflation data will likely set the short-term direction for bullion.”
How to trade gold?
Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:
- Gold has support at Rs 97,440-97,000 and resistance at Rs 98.000-98,360
- Silver has support at Rs 1,12,000-1,10,800 and resistance at Rs 1,14,000-1,15,200
Jain suggests staying away from taking fresh positions in gold and silver ahead of the U.S. inflation data.
Rahul Kalantri noted that gold has support at Rs 97,390-97,000 while resistance is placed at Rs 98,110-98,380. Silver has support at Rs1,12,080-1,11,350 while resistance is at Rs1,13,850-1,14,700.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 57,416/8 grams while pure gold (24 carat) prices stand at Rs 61,240/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 57,552/8 grams while pure gold (24 carat) prices stand at Rs 61,392/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 57,080/8 grams while pure gold (24 carat) prices stand at Rs 60,784/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 57,256/8 grams while pure gold (24 carat) prices stand at Rs 61,000/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
