In recent trading sessions, precious metals have displayed notable strength, particularly gold and silver, as geopolitical tensions and economic factors have influenced market dynamics. As of today, Gold December futures contracts at the Multi Commodity Exchange (MCX) opened at ₹75,400 per 10 grams, reflecting an increase of nearly 0.50% or ₹353. Similarly, silver December futures contracts were trading at ₹91,059 per kilogram, up by 0.6% or ₹546. This resurgence follows a significant uptick in prices over the past two days, with gold prices soaring by ₹1,480 per 10 grams and silver prices climbing by ₹2,700 per kilogram.
Recent Market Performance
On Monday, both gold and silver managed to break their losing streak, closing on a positive note in both domestic and international markets. The Gold December futures contract settled at ₹75,047 per 10 grams, marking a gain of 1.49%, while silver December futures closed at ₹90,513 per kilogram, up by 2.37%. This rebound can be attributed to escalating geopolitical tensions, particularly the ongoing Russia-Ukraine conflict, which has heightened global uncertainty.
Over the weekend, Russia intensified its military actions by targeting Ukrainian power facilities, prompting U.S. President Joe Biden to authorize Ukraine to strike within Russian territory using U.S.-supplied long-range missiles. Such developments have historically led investors to seek safe-haven assets like gold and silver, driving up their prices.
The Impact of the Dollar Index
Another factor contributing to the rise in precious metal prices is the recent profit-taking observed in the dollar index, which had reached one-year highs. As of today, the U.S. Dollar Index (DXY) was hovering near the 106.13 mark, gaining 0.14 or 0.13%. A weaker dollar typically makes gold and silver more attractive to investors, further supporting their prices.
Bullish Outlook from Goldman Sachs
Adding to the positive sentiment, Goldman Sachs recently released a bullish report on gold, projecting target prices of $3,000 per troy ounce by December 2025. This forecast is driven by the anticipated global uncertainty following the potential re-election of Donald Trump in the U.S. Presidential elections. However, experts caution that uncertainty surrounding Federal Reserve rate cuts could temper the gains of gold and silver in the short term.
Manoj Kumar Jain of Prithvifinmart Commodity Research noted, “We expect gold and silver prices to remain volatile amid fluctuations in the dollar index and U.S. bond yields, but they could hold key support levels of $2,554 and $29.88 per troy ounce respectively this week.”
Support and Resistance Levels
For traders looking to navigate the current market conditions, Jain has outlined specific support and resistance levels for gold and silver. At MCX, gold has support at ₹74,770-74,500 and resistance at ₹75,330-75,650. Silver, on the other hand, has support at ₹89,800-89,150 and resistance at ₹91,200-92,000. Jain recommends buying gold on dips around ₹74,770 with a stop loss of ₹74,400 for a target of ₹75,500.
Gold Prices in Physical Markets
As the futures market fluctuates, physical gold prices also reflect the current trends. Here’s a snapshot of gold prices across major Indian cities today:
Gold Price in Delhi
Standard Gold (22 Carat): ₹57,248 per 8 grams
Pure Gold (24 Carat): ₹61,080 per 8 grams
Gold Price in Mumbai
Standard Gold (22 Carat): ₹57,448 per 8 grams
Pure Gold (24 Carat): ₹61,240 per 8 grams
Gold Price in Chennai
Standard Gold (22 Carat): ₹56,744 per 8 grams
Pure Gold (24 Carat): ₹60,536 per 8 grams
Gold Price in Hyderabad
Standard Gold (22 Carat): ₹56,816 per 8 grams
Pure Gold (24 Carat): ₹60,496 per 8 grams
Conclusion
The recent strength in precious metals, particularly gold and silver, underscores the impact of global events and economic indicators on market sentiment. As investors navigate these turbulent waters, the allure of safe-haven assets remains strong. With ongoing geopolitical tensions and fluctuating economic conditions, the precious metals market is likely to continue experiencing volatility, making it essential for traders and investors to stay informed and agile.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times.)
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