Ahead of the key US economic data and weakness in crude oil, Gold October futures contracts at MCX opened flat on Wednesday with a positive bias at Rs 71,250 per 10 gram, which is up by 0.1% or Rs 125 while silver December futures contracts were trading at Rs 82,768/kg, down by 0.08% or Rs 505.
In the last 4 days, the prices of gold have fallen by Rs 700/10 gm while silver has dipped by nearly Rs 3,900 per kilogram.
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Gold and silver extended its fall ahead of the key U.S. economic data and weakness in crude oil. The U.S. JOLTS job opening and employment data are due later this week and market participants are booking profits in their long positions.
Crude oil prices slipped to 9-month lows amid news of resumption in Libyan oil production and also pushed precious metals lower. The Bank of Japan Governor said to further hike interest rates if required, after his statement global equity markets showed sell-off and also pressurized gold and silver prices due to Yen carry trade effects.
Today, the US Dollar Index, DXY, was hovering near the 101.66 mark, falling 0.16 or 0.17%.
“The Chinese manufacturing activity data contracted once again in the last month and demand worries from China also pushed precious metals lower. We expect gold and silver prices to remain volatile this week amid volatility in the dollar index and ahead of the U.S. job data but it could hold its key support level of $2,464 per troy ounce and $27.80 per troy ounce respectively on a weekly closing basis,” .
Bullion Ranges for gold and silver
- At MCX gold is having support at 70,900——70,700 and resistance at 71,750——71,950.
- MCX Silver has support at 82,200——81,700 and resistance at 83,400——85,500.
“We suggest selling gold on a rise around 71,600 for the target of 71,100,”
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of GoldSilverReports.com)
