Gold Prices Reach Two-Week High Today: What’s Next for Investors?
Gold prices have shown a steady upward trend today, with June futures at the Multi Commodity Exchange (MCX) opening at Rs 95,600 per 10 grams, marking their highest level in two weeks. This increase comes despite some profit-taking influenced by fluctuations in the global bond market and rising Bitcoin values. Silver futures for July also saw a slight uptick, starting the day at Rs 98,051 per kilogram. Experts suggest that ongoing geopolitical tensions and weakness in global equities may continue to drive demand for these precious metals.
Current Market Trends
Gold June futures began trading with a modest gain of 0.07%, equivalent to Rs 64, while silver July futures rose by Rs 255 or 0.26%. Manoj Kumar Jain from Prithvifinmart Commodity Research noted that the safe-haven demand for gold and silver could remain strong due to current market conditions. He indicated that volatility in the dollar index and global bond markets, along with tensions in the Middle East, are likely to impact prices. Jain expects gold to maintain support at $3,240 per troy ounce and silver at $32.40 per troy ounce on a closing basis.
In the previous trading session, both gold and silver experienced declines. Gold futures settled at Rs 95,536 per 10 grams, down by 0.07%, while silver futures closed at Rs 97,796 per kilogram, a decrease of 0.46%. The fluctuations in prices were attributed to profit-taking after initial gains, as investors reacted to the volatility in the global financial landscape.
Global Economic Influences
Recent developments in the global bond market have contributed to the uncertainty affecting precious metal prices. The U.S. 20-year bond auction received a lukewarm response, leading to U.S. 30-year bond yields surpassing 5.0% for the first time since October 2023. Additionally, Japanese 30-year bond yields reached a record high of 3.18% on Thursday. These shifts in the bond market have heightened investor caution, further influencing the demand for gold and silver as safe-haven assets.
The U.S. Dollar Index (DXY) also saw a decline of 0.32%, settling near 99.65. This drop in the dollar’s value can make gold and silver more attractive to investors, potentially supporting their prices in the face of global economic challenges.
Price Predictions and Recommendations
Jain provided specific price ranges for gold and silver on the MCX. He indicated that gold’s support levels are between Rs 95,050 and Rs 94,600, with resistance at Rs 96,000 to Rs 96,650. For silver, support levels are set at Rs 97,000 to Rs 96,300, while resistance ranges from Rs 98,500 to Rs 99,300. Given the current market volatility, Jain advises investors to consider purchasing gold and silver during price dips.
Today’s trading parameters are established between Rs 94,600 and Rs 96,650 for gold, and Rs 96,300 to Rs 99,300 for silver. As the market continues to fluctuate, investors are encouraged to stay informed and make strategic decisions based on the evolving economic landscape.
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