Gold and prices commenced the day on a positive note on the MCX on Wednesday, continuing the upward trend observed this week. Gold February futures were priced at Rs 1,27,640 per 10 grams, reflecting an increase of Rs 645 or 0.51%. Meanwhile, silver March futures experienced a rise of Rs 1,711 or 1.07%, reaching Rs 1,61,732 per kg. Gold has increased by Rs 1,790, while silver has risen by Rs 3,855 this week, buoyed by expectations of a US Federal Reserve rate cut in December and positive sentiment regarding advancements in a Ukraine–Russia peace agreement. On the global front, gold and silver persist in their consolidation following robust rallies spanning several months. On COMEX, gold is exhibiting a constrained sideways movement, as buyers are actively supporting the $4,080–$4,100 range while sellers are engaged near the $4,230–$4,250 levels.
“This compression typically precedes a breakout.” A sustained close above 4,250 could open the door for an extension toward 4,320–4,350, while dips continue to attract buying interest,” noted Ponmudi R. On Tuesday, gold and silver concluded the day on a positive trajectory in the domestic market, while experiencing a decline in the international markets. The February futures contract for gold concluded at Rs 1,26,995 per 10 grams, reflecting a gain of 1.16%. Meanwhile, the March futures contract for silver settled at Rs 1,60,021 per kilogram, marking an increase of 1.15%. Gold and silver exhibited significant price volatility and concluded on a marginally weaker note following a statement from U.S. officials indicating that Russia and Ukraine have reached a peace agreement. The economic data from the U.S. released on Tuesday presented a mixed picture, with a decline in consumer sentiment juxtaposed against pending home sales that exceeded expectations. The dollar index has once again fallen below the 100 threshold, providing support for gold and silver prices at these reduced levels.
Today, the US Dollar Index was hovering near the 99.67 mark, gaining 0.14, or 0.14%. “Despite market volatilities, gold is expected to hold its make-or-break level of $3,910 per troy ounce, and silver could also hold its key support level of $47.70 per troy ounce in the international markets,” stated Manoj Kumar Jain.
“We expect gold and silver prices to remain volatile this week amid fluctuations in the dollar index and instability in the global financial markets, ahead of the U.S. unemployment claims data and updates on the Russia-Ukraine peace deal. Gold is anticipated to trade within the range of $4,040-4,270 per troy ounce, while silver is projected to trade between $48.40-52.70 per troy ounce this week,” he added.