Investors recently decided to secure profits in gold amid fluctuations associated with concerns about tariffs from the Trump era. This resulted in June gold futures on the MCX opening lower by Rs 592, or 0.62%, at Rs 94,797 per 10 grams on Friday. This occurred despite initial GDP data indicating a contraction, which had previously enhanced gold’s appeal as a safe-haven asset.
Analysts maintain a positive outlook on gold, forecasting a potential rise to Rs 1,10,000 per 10 grams within a year due to its history of providing strong returns.
On Thursday, gold and silver ended positively in both domestic and international markets. Gold’s June futures settled at Rs 95,389 per 10 grams, increasing by 0.12%, while silver’s July futures closed at Rs 97,826 per kilogram, up by 0.59%. On Friday, silver’s July futures at MCX began lower by Rs 884 or 0.9% at Rs 96,942 per kilogram.
Gold and silver experienced significant volatility on Thursday. Gold prices fell sharply after a U.S. Federal court blocked Trump’s tariff plan but recovered after the U.S. President announced plans to appeal the decision.
The dollar index also declined, influenced by a larger than expected increase in U.S. jobless claims, which supported precious metal prices. Initially, the dollar index hit the 100 mark but didn’t sustain those levels, dropping again. The U.S. Dollar Index, DXY, hovered near 99.44, gaining 0.16 or 0.16%. Jobless claims rose to 240,000, higher than the 229,000 expected, with preliminary GDP data indicating economic contraction, further reinforcing precious metal prices.
Manoj Kumar Jain of Prithvifinmart Commodity Research commented that gold and silver prices are likely to remain volatile due to fluctuations in the dollar index, geopolitical tensions, and upcoming U.S. economic data. Gold could maintain support at $3,250 per troy ounce, and silver could hold $32.80 per troy ounce on a weekly closing basis.
Jain suggested trading ranges for gold and silver on MCX:
– Gold support at Rs 95,000-94,600 and resistance at Rs 95,800-96,160.
– Silver support at Rs 97,100-96,600 and resistance at Rs 98,300-99,100.
He recommended buying silver at Rs 97,200-96,800, with a stop loss of Rs 96,400, aiming for a target of Rs 98,400.
According to a report by Angel One, despite volatility, gold has historically yielded good returns and should be viewed as a long-term investment. They predict a potential international price of $4,000 per ounce and Rs 1,10,000 per 10 grams in India, advising investors to buy during corrections toward Rs 85,000 per 10 grams.
Current gold prices in various cities are:
– Delhi: 22-carat gold at Rs 57,800 per 8 grams; 24-carat at Rs 61,584 per 8 grams.
– Mumbai: 22-carat gold at Rs 57,464 per 8 grams; 24-carat at Rs 61,256 per 8 grams.
– Chennai: 22-carat gold at Rs 56,816 per 8 grams; 24-carat at Rs 60,504 per 8 grams.
– Hyderabad: 22-carat gold at Rs 56,984 per 8 grams; 24-carat at Rs 60,760 per 8 grams.
Disclaimer: The recommendations and opinions expressed are those of the individual experts and do not reflect the views of The Economic Times.
