Gold at 2-week low ahead of Fed meet. Will it fall below Rs 98k? Check what analysts say
ADVERTISEMENT Meanwhile, silver July futures contracts also mirrored the sentiment, trading higher by 0.25% or Rs 278 at Rs 1,13,330/kg.
On Friday, gold and silver settled on a weaker note in the domestic and international markets. Gold August futures contract settled at Rs 97,819 per 10 grams with a loss of 0.92% and silver September futures contract settled at Rs 1,13,052 per kilogram with a loss of 1.81%.
Gold and silver showed heavy profit taking last week amid a rebound in the dollar index and the U.S. and Japan trade deal. The dollar index rebounded ahead of the Fed monetary policy meetings and triggered profit taking in precious metals. The US-Japan trade deal also increased hopes for the US-EU trade deal before U.S. tariff deadline of 1st August and also pushed gold and silver prices lower.'The U.S. trade tariff uncertainty and geopolitical tensions are supporting gold and silver prices at lower levels. The U.S. trade deal with numerous countries before the tariff deadline of 1st August looks impossible and recent tensions between Thailand and Cambodia could support precious metal prices,' said Manoj Kumar Jain of Prithvifinmart Commodity Research.Today, the US Dollar Index, DXY, was hovering near the 97.73 mark, gaining 0.09 or 0.09%.
ADVERTISEMENT 'We expect gold and silver prices to remain volatile this week amid volatility in the global financial markets, the Fed monetary policy meeting and the U.S. trade tariff deadline but gold prices could hold its support level of $3,240 per troy ounce and silver prices could also hold $36.40 per troy ounce levels on a weekly closing basis,' he added.
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Gold has support at Rs 97,440-97,100 and resistance at Rs 98,280-98,600
has support at Rs 97,440-97,100 and resistance at Rs 98,280-98,600 Silver has support at Rs 1,12,200-1,11,000 and resistance at Rs 1,14,000-1,15,115
Jain suggests buying gold around Rs 97,700 with a strict stop loss of Rs 97,380 for a target of Rs 98,300.
ADVERTISEMENT Standard gold (22 carat) prices in Delhi stand at Rs 57,872/8 grams while pure gold (24 carat) prices stand at Rs 61,760/8 grams.Standard gold (22 carat) prices in Mumbai stand at Rs 57,528/8 grams while pure gold (24 carat) prices stand at Rs 61,384/8 grams.
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Standard gold (22 carat) prices in Chennai stand at Rs 56,808/8 grams while pure gold (24 carat) prices stand at Rs 60,400/8 grams.Standard gold (22 carat) prices in Hyderabad stand at Rs 57,096/8 grams while pure gold (24 carat) prices stand at Rs 60,808/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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