Gold prices were little changed on Wednesday in the international markets, remaining close to a one-month high achieved in the previous session. gold was down 0.1% at $1,709.80 per ounce. US gold futures decreased by 0.1% to $1,714.10. On the Multi-Commodity Exchange (MCX), gold contracts were trading 0.16% higher at Rs 51,545 for 10 grams while silver prices were down 0.36% at Rs 61,735 for a kilogram.
Gold and silver prices on Tuesday settled on a positive note in the international markets. The December futures contract for gold concluded at $1,716, up 2.11% per troy ounce, and the December futures contract for silver closed at $21, up 2.78% per troy ounce. Domestic markets concluded the day well.
The dollar index is likely to continue to decline, which could help precious metals. Any drop-in value would be a great time to buy gold and silver.
- Support for gold is located at $1700-1684, and resistance is found at $1730 – 1744 per troy ounce.
- Support for silver is between $21.20 and $20.88, while resistance is between $21.80 and 22.00 per troy ounce.
- Silver has support at Rs. 61300-60660 and resistance at Rs. 62500-63200 at the MCX, while gold has support at Rs. 51400-51220 and resistance at Rs. 51850-52080.
For the first time in a month, gold prices were settled above $1700. In a scenario where the currency is weaker and government yields are lower, gold appears more tempting. Overall, recessionary concerns, the outcome of the US midterm elections, and worries over US economic confidence statistics solidified the case for a lower terminal rate hike by the Fed, which was a major driver of gold’s price increase.