Gold, silver prices hit 3-week high: What's the reason?
What's the story
Gold and silver prices have hit a three-week high today, buoyed by profit booking in the US dollar index. This trend has been observed on the Multi Commodity Exchange (MCX), where December futures contracts for gold and silver traded at ₹1,25,007 per 10g and ₹1,55,269 per kg respectively today. The rise is attributed to possible US Federal Reserve rate cuts in December policy meetings.
Market forecast
Analysts predict further upside momentum in near term
The recent surge in gold and silver prices has led analysts to predict further upside momentum in the near term. Manoj Kumar Jain of Prithvifinmart Commodity Research noted that both metals have hit multi-week highs due to dollar index profit taking and safe-haven buying. He also emphasized key support levels for both precious metals, which could indicate potential future gains.
External factors
Dollar index, global financial market fluctuations to impact metals' prices
The US Dollar Index (DXY) was trading at around 99.67, up 0.04%. Jain expects gold and silver prices to remain volatile this week due to fluctuations in the dollar index and global financial markets. He anticipates gold will trade between $3,960-4,220 per troy ounce, while silver will trade between $47.00-52.50 per troy ounce this week.
Trading advice
Jain recommends buying gold, silver on every dip
Jain has given specific support and resistance levels for gold and silver on the MCX market. He recommends buying both metals on every dip until they hold certain levels on a closing basis. Jain predicts that gold could test ₹1,26,000 while silver could also test ₹1,58,000 in two to three sessions, based on current trends in global financial markets impacting prices of these precious metals.