Gold and silver prices started the week on a positive note, buoyed by favorable global indicators. The weakening US dollar and increasing likelihood of a Federal Reserve rate cut in the coming month have driven demand for safe-haven assets.
At the current moment, on the Multi Commodity Exchange (MCX), gold has surged by 1.64% to reach Rs 1,23,057 per 10 grams, while silver has seen a rise of 2.66% to hit Rs 1,51,657 per kilogram.
Market sentiment has been heavily influenced by global economic uncertainties and expectations of lower interest rates in the US. In anticipation of a rate decrease, investors tend to gravitate towards assets like gold and silver, considered safer options.
The depreciation of the US dollar has also made precious metals more accessible to buyers outside the US, further boosting demand. Concerns regarding the stability of the US economy have additionally fueled interest in safe-haven assets.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd., highlighted the persistence of high volatility in global markets, noting that metals have managed to hold steady. He emphasized that gold and silver prices have maintained their position despite challenges, with certain price levels serving as crucial resistance points.
Kalantri pointed out that prices rebounded from lower levels following weak US consumer sentiment and ongoing uncertainties surrounding the US economy. The softening of the dollar index has provided additional support to bullion prices, according to him.
In terms of technical analysis, Kalantri suggested that gold has support levels between $3,955–$3,920 and resistance levels at $4,040–$4,065. For silver, he indicated support at $47.80–$47.45 and resistance at $48.55–$48.85. In the Indian market, he forecasted gold support at Rs 1,20,450– Rs 1,19,880, and resistance at Rs 1,21,790–Rs 1,22,400. Silver was expected to find support at Rs 1,46,850– Rs 1,45,900, with resistance between Rs 1,48,840– Rs 1,49,780.
As the wedding season progresses and retail demand strengthens, jewellers anticipate that prices will remain elevated but with manageable fluctuations. Parag Shah, CEO of KISNA Diamond and Gold Jewellery, advised consumers to make careful purchasing decisions and expect gold prices to fluctuate between Rs 11,000 and Rs 13,000 per gram for 22KT gold, depending on market variations.
Shah recommended early planning and strategic purchasing to help families optimize their budgets amidst the evolving market conditions.
For long-term buyers and wedding shoppers, experts suggest avoiding last-minute decisions, as global trends are likely to impact daily price movements. Monitoring support levels before making investment choices is advisable as gold and silver continue to shine as safe assets in the face of global economic uncertainties.