Gold prices down ₹6,500 from peak— Good time to buy?
What's the story
Gold prices have witnessed a sharp decline, slipping by nearly ₹6,500 from its all-time high of ₹99,358/10gm.
Today, gold June futures contracts at MCX opened lower at ₹92,965/10gm while silver July futures fell to ₹95,172/kg.
The decline reflects the mood in the international market where gold and silver tested higher resistance levels after Moody's downgraded the US credit rating last Friday.
However, the precious metals failed to hold on to the rally.
Market trends
Gold and silver prices settle positively on Monday
Despite the initial downturn, gold and silver settled positively in both domestic and international markets on Monday.
Gold June futures contract closed at ₹93,297 per 10gm with a gain of 0.93%, while silver July futures contract settled at ₹95,453 per kilogram with a gain of 0.14%.
The dollar index also supported gold and silver prices. Today, the US Dollar Index, DXY, hovered near the 100.36 mark, falling 0.07%.
Expert advice
Suggested trading ranges for gold and silver
Manoj Kumar Jain of Prithvifinmart Commodity Research says Russia-Ukraine peace deal could limit gains of gold and silver this week amid volatility in the dollar index.
Jain has given the following ranges for gold and silver on MCX: Gold has support at ₹92,750-92,200 and resistance at ₹93,850-94,400.
Silver has support at ₹94,800-94,000 and resistance at ₹96,000-96,650.
Jain recommends buying silver on dips around ₹94,800 with a stop loss of ₹94,150 for a target of ₹96,100.