Gold Prices Surge by Over Rs 5,000 Today
Gold prices have shown a modest increase today, with June futures at the Multi Commodity Exchange (MCX) rising by Rs 113, or 0.12%, to reach Rs 96,050 per 10 grams. This uptick comes after a recent low of Rs 90,890 per 10 grams recorded on May 15, marking a significant recovery of Rs 5,160. Meanwhile, silver July futures have remained nearly unchanged, reflecting a slight rise of Rs 42, or 0.04%, settling at Rs 98,045 per kilogram. Despite this positive trend, both metals experienced slight declines in the domestic market on Monday, influenced by international market fluctuations and geopolitical tensions.
Market Performance of Precious Metals
In the domestic market, gold June futures concluded at Rs 95,937 per 10 grams, reflecting a decrease of 0.50%. Similarly, silver July futures ended at Rs 98,003 per kilogram, down by 0.05%. The recent trading session saw both metals retreat slightly after substantial gains in the previous week. This decline was attributed to the U.S. President’s decision to postpone trade tariffs on the European Union, which impacted market sentiment. Additionally, trading volumes were lower due to the Memorial Day holiday in U.S. markets, leading to modest profit-taking in both gold and silver.
The dollar index also played a crucial role in the market dynamics, continuing its downward trend and falling below 99 points to reach one-month lows. The U.S. Dollar Index (DXY) recorded a decline of 0.25%, settling near 98.86. The weakening of the dollar has been a significant factor supporting safe-haven buying for precious metals, as noted by Manoj Kumar Jain from Prithvifinmart Commodity Research.
Factors Influencing Gold and Silver Prices
According to market analysts, several factors are influencing the prices of gold and silver. Geopolitical tensions and global uncertainty have heightened the demand for safe-haven assets, leading to increased buying of precious metals. Jain highlighted that gold and silver prices are expected to remain volatile this week, primarily due to fluctuations in the dollar index and global bond markets. He anticipates that gold prices could maintain a support level of $3,200 per troy ounce, while silver prices may hold at $31.80 per troy ounce on a weekly closing basis.
The interplay of these factors suggests that investors should remain cautious. The market’s response to geopolitical developments and economic indicators will likely dictate the future trajectory of gold and silver prices. As such, traders are advised to monitor these variables closely.
Trading Strategies for Investors
For investors looking to navigate the current market conditions, Jain provided specific trading strategies for gold and silver. He indicated that gold’s support levels are positioned at Rs 95,400 to Rs 94,950, while resistance levels are set between Rs 96,650 and Rs 97,200. For silver, support levels are identified at Rs 97,200 to Rs 96,650, with resistance levels ranging from Rs 98,850 to Rs 95,500.
Jain recommends that investors consider purchasing both gold and silver during price dips. He expects gold to trade within the range of Rs 94,800 to Rs 96,650 and silver within Rs 96,650 to Rs 99,500 during the current trading session. This strategy aims to capitalize on potential price fluctuations while managing risk effectively. Investors are encouraged to stay informed about market trends and adjust their strategies accordingly.
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