Gold and Silver Prices Rally

Gold and Silver Prices Rally

VoM News Desk | October 6, 2023 | 11:45 AM IST | Breaking News | Follow on Google News

Gold and Silver Prices Rally

Gold and Silver Prices Rally

Gold prices continued their rally for the second consecutive session during early morning trading on Friday. The December 2023 gold futures contract on the Multi Commodity Exchange (MCX) opened at ₹56,735 per 10 grams and quickly reached an intraday high of ₹56,739 per 10 grams.

In the international market, spot gold prices hovered around $1,823 per ounce after reaching an intraday high of $1,824.58.

Meanwhile, silver prices also opened higher at ₹66,825 per kilogram and climbed to an intraday high of ₹67,099 within minutes of the commodity market’s opening.

The uptick in precious metal prices comes amid speculations that there may not be a US Federal Reserve rate hike in the November meeting. Recent drops in crude oil prices have contributed to this sentiment, easing inflation fears for the US Federal Reserve.

Anuj Gupta, Head of Commodity & Currency at HDFC Securities, noted that both WTI and Brent crude oil prices have dropped by nearly $15 per barrel in the last two weeks, alleviating concerns about inflation.

Furthermore, the US dollar index has approached 106 levels, potentially falling toward 103 levels after breaking its immediate support at 105 levels.

As for the USD to INR outlook, Anuj Choudhary, Research Analyst at Sharekhan by BNP Paribas, expects the rupee to trade with a slight negative bias due to rising US Treasury yields and the potential recovery of the US dollar. However, weak crude oil prices and positive global markets may offer some support for the rupee at lower levels.

Regarding gold price levels, Deveya Gaglani, Research Analyst – Commodities at Axis Securities, highlighted strong support at ₹56,500 per 10 grams and suggested maintaining a buy-on-dips strategy as long as this level holds. He expects gold prices to trade between ₹56,500 and ₹57,000 in the near term, with the potential to reach ₹57,500 on breaching the upper hurdle.

For silver, Anuj Gupta noted an international range of $20 to $22 per ounce and a broader MCX range of ₹63,000 to ₹70,000 per kilogram, with a smaller range of ₹65,000 to ₹68,000 per kilogram.

The price trends and factors discussed here provide valuable insights into the current dynamics of the gold and silver markets.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.