Home / Markets / Commodities /  Gold prices today remain near lowest in a month, silver rates jump

Gold prices in India was flat while silver rates firmed, tracking similar global cues. On MCX, gold futures dipped slightly to near one-month low of 50,421 per 10 gram while silver futures rose 0.7% to 53,778 per kg. In global markets, the yellow metal was flat at $1,712.09 per ounce, under pressure amid a stronger US dollar. Gold traders will be focusing on European Central Bank's meeting scheduled on Thursday. In global markets, spot silver rose 0.9% to $18.32 per ounce. 

Analysts expect ECB to deliver a 75 basis-point interest rate hike to tame surging prices. Traders also expect a big interest rate hike from the U.S. Federal Reserve at its September 20-21 policy meeting.

“COMEX gold trades higher amid choppiness in the US dollar and bond yields post mixed US jobs report and positioning ahead of central bank decisions from Australia and European Central Bank. Also supporting gold and other commodities is China’s willingness to take additional measures to support economic activity and renewed energy concerns relating to Europe," said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

"ETF flows however show weaker investor interest. Gold’s sharp fall has made it vulnerable to short covering and we could see some extended gains as market focus shifts from Fed to other central banks as it may keep the US dollar volatile."

The dollar index remained near its recent peak. A stronger dollar makes gold expensive for overseas buyers.

Gold Technical Outlook

“Gold and silver traded in a tight range and held above the key $1,700 and $18.00 level respectively on hopes the Federal Reserve might slow the pace of rate increases following a mixed US jobs data last week that helped offset pressure from a rising dollar. The dollar index hit fresh 20 year highs and the euro slipped to new two decade lows against the dollar after Russia halted gas supply to the European Union. The OPEC+ nations decision to cut oil production in its meeting also supported gold prices," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.

“Gold has support at $1718-1706, while resistance is at $1742-1755. Silver has support at $17.85-17.68, while resistance is at $18.48-18.55. In rupee terms, gold has support at 50,250–49,940, while resistance is at 50,680–50,840. Silver has support at Rs52,750-52,320, while resistance is at 53,980–54,410."


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