Gold and Silver Prices Experience Volatility Amid Trade Tensions and Economic Data
In recent trading, gold and silver futures displayed notable fluctuations due to shifting market dynamics, with ongoing economic developments and geopolitical issues influencing investor sentiment. As of Thursday, April futures for gold at the Multi Commodity Exchange (MCX) opened slightly lower at Rs 84,512 per 10 grams, following a meteoric rise to an all-time high of Rs 84,894 per 10 grams earlier in the week. Meanwhile, silver March futures decreased to Rs 95,549 per kilogram.
Weekly Gains in Precious Metals
Throughout the week, gold has demonstrated a robust performance, gaining Rs 2,200 per 10 grams. This increase has primarily been fueled by a weakened US dollar and heightened demand for safe-haven assets. Analysts closely observe these trends as they gauge the potential for price volatility in the coming days. Silver has not been left behind, rising by nearly Rs 2,300 per kilogram during the same period.
On Wednesday, both gold and silver concluded trading on a positive note. Gold April futures ended at Rs 84,567 per 10 grams—a 0.92% increase—while silver March futures saw a slight rise to Rs 95,965 per kilogram, marking a 0.27% gain.
Global Market Influences
The international market has also been witnessing significant price movements. Gold reached unprecedented levels, climbing to around $2,900 per troy ounce for the first time. This surge is partly attributed to a weakening Indian rupee and profit-taking strategies against the dollar index. On Wednesday, the dollar index dipped below the 108 mark, following which it hovered around 107.68, gaining 0.10 or 0.09% as of the latest reports.
However, the US non-farm employment figures released by the ADP showed an unexpected increase to 183,000 jobs—exceeding the anticipated 148,000—which has somewhat tempered gains for precious metals. Manoj Kumar Jain of Prithvi Finmart Commodity Research has noted that while safe-haven buying continues to support prices, the upbeat economic data may limit further upward momentum.
Price Volatility Ahead
Looking forward, experts predict continued volatility in gold and silver prices due to fluctuations in the dollar index and the ongoing tensions related to global trade, particularly with the anticipated policy meetings from the Bank of England. According to Jain, support and resistance levels are critical for traders to consider:
- Gold Futures:
- Support: Rs 84,140 – Rs 83,800
- Resistance: Rs 84,900 – Rs 85,250
- Silver Futures:
- Support: Rs 95,200 – Rs 94,400
- Resistance: Rs 96,650 – Rs 97,400
Jain has advised potential buyers to consider entry points around Rs 95,500 for silver, recommending a stop loss at Rs 94,750 with a target price of Rs 96,800.
Physical Market Prices
As the futures market fluctuates, physical gold prices reflect similar trends across major Indian cities:
- Delhi:
- Standard Gold (22 carat): Rs 57,984 per 8 grams
- Pure Gold (24 carat): Rs 61,840 per 8 grams
- Mumbai:
- Standard Gold (22 carat): Rs 56,872 per 8 grams
- Pure Gold (24 carat): Rs 60,624 per 8 grams
- Chennai:
- Standard Gold (22 carat): Rs 56,952 per 8 grams
- Pure Gold (24 carat): Rs 60,720 per 8 grams
- Hyderabad:
- Standard Gold (22 carat): Rs 57,160 per 8 grams
- Pure Gold (24 carat): Rs 60,960 per 8 grams
Conclusion
As the market navigates through complex economic signals and international tensions, both gold and silver are expected to remain sensitive to various influencing factors. Investors should stay informed about forthcoming economic reports and geopolitical developments that could impact prices, ensuring strategic trading decisions in this dynamic environment.
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