Secrets Unveiled: Gold & Silver Prices Soar Amidst Market Turbulence – Are You Missing Out?

Gold prices initiated trading on Tuesday at Rs 58,995 per 10 grams on the Multi Commodity Exchange (MCX), reaching an intraday low of Rs 58,880. In the global market, gold prices hovered around $1,922.87 per troy ounce. Simultaneously, the MCX saw silver’s opening price at Rs 72,185 per kilogram, with an intraday low of Rs 72,030. In the international arena, silver prices floated at approximately $23.08 per troy ounce.

Anuj Gupta, who holds the position of Head of Commodity and Currency at HDFC Securities, commented, “Yesterday, Gold prices closed with minimal change, registering a mere 0.05 percent increase, settling at 58,930. This stability can be attributed to the absence of new market triggers, although the market eagerly awaits forthcoming US Economic data and the FOMC’s decision on interest rates. Additionally, we observed some profit booking in the dollar index from its higher levels. In terms of trading prospects, gold is anticipated to fluctuate within the range of $1910 to $1930, while on the MCX, it may trade in the range of 58,500 to 59,300 levels, displaying a mixed overall trend.”

Gold prices remained stable, following their initial ascent at the start of the week, driven by a decline in the dollar index. Investors also awaited the release of US inflation figures, which could provide updated insights into interest rates following the widely expected pause by the Federal Reserve next week.

Amit Khare, Associate Vice President at GCL Broking, offered insights, stating, “October Gold concluded at 58,930, marking a 0.07 percent increase, while December Silver closed at 71,942, reflecting a 0.53 percent gain. The daily charts for bullion exhibit a bottoming pattern and are trading in proximity to the demand zone. The Momentum Indicator RSI is also indicating the same trend. Consequently, traders are advised to initiate fresh buy positions in Gold and Silver around the specified support level one, with a stop loss set at support level two. Profit booking can be considered near the indicated resistance levels: Gold October Support 58,850/58,600 and Resistance 59,100/59,300. Silver December Support 71,500/70,700 and Resistance 72,300/73,000.”

US yields showed slight firmness, with two-year yields increasing by 1 basis point (bps) and ten-year yields rising by 3 bps. The Dollar Index experienced a 0.54 percent decline, closing at 104.52.

Manav Modi, an Analyst specializing in Commodity and Currency at MOFSL, commented, “The US dollar index stabilized after registering its most significant intraday loss in two weeks during the prior session. US 10-year yields held firm around their previous week high of 4.3 percent, capping gains for precious metals. Federal Reserve officials were notably active in the preceding week, preparing the market for the forthcoming Fed meeting. Their discussions revolved around concerns regarding inflation and their commitment to bringing it down to their 2 percent target. However, some members were in favor of maintaining interest rates at their current levels. The CME Fed-Watch tool indicates a 93 percent probability of a pause in the September Fed meeting, which supports an upward movement in gold and silver prices. Additionally, better-than-expected data from China over the weekend bolstered sentiment for industrial metals, including silver. Alongside inflation data from the US and India, this week’s focus also extends to the ECB’s interest rate decision.”

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