As players avoided making significant changes ahead of a crucial U.S. inflation number that might affect the magnitude of the Federal Reserve’s next interest rate hike, gold prices were stable on Thursday in foreign markets. Spot gold was unchanged at $1,672.79 per ounce. At $1,679.80, U.S. gold futures were up 0.1%. On the Multi-Commodity Exchange (MCX), gold contracts were trading 0.03% lower at Rs 50,891 for 10 grams while silver prices were up 0.02% at Rs 57,335 for a kilogram.
In the international markets on Wednesday, gold and silver ended on a negative note. Silver December futures contract finished at $18.94 per troy ounce, down 2.83% from the previous settlement price of $1,677.50 per troy ounce for gold. Additionally, domestic markets closed in a negative tone. Gold December futures contract lost 0.37 percent and ended at Rs 50,905 per 10 grams. The December silver futures contract finished at Rs 57,325 per kilogram, down 2.07%.
Ahead of today’s release of the U.S. inflation figures, we anticipate that the price of gold and silver will remain erratic. Support and resistance levels for gold per troy ounce are $1,668-1,655 and $1,688-1,700, respectively. Support and resistance levels for silver are $18.70 and $18.45 per troy ounce, respectively. Silver has support around Rs. 56,900-56,650 and resistance at Rs. 57,750-58,400 on the MCX, while gold has support at Rs. 50,740-50,580. For a target price of Rs 58,300, we advise purchasing silver around Rs 57,100 with a stop loss of Rs 56,650 (closing basis).
The aggressive US Fed perspective on monetary policy may further increase the dollar index, which could put pressure on precious metals prices. Any increase in precious metals today could result in selling pressure. Support for gold is at Rs. 50,400, and resistance is at Rs. 51,300. Silver’s support is at Rs 56,400 and its resistance is at Rs 58,000.