Gold, silver prices in India rise today: What's the reason?
What's the story
Gold and silver prices rose in early trade on the Multi Commodity Exchange (MCX) today. The gains were mainly due to value buying after a slight easing of the US dollar. The August futures for gold traded at ₹1,41,322 per 10g, up by 0.30%. Meanwhile, September contracts for silver surged by 1.38% to ₹2,19,400 per kg around 10:00am today.
Market fluctuations
Gold prices in US fall
Despite the rise in MCX, gold prices in the US fell as rising tensions in the Middle East pushed Brent crude above $90 per barrel.
This fueled inflation fears and heightened expectations of rate hikes by the US Federal Reserve this year.
The ongoing US-Iran war has complicated matters, with reports indicating that America launched a ninth consecutive night of airstrikes on Iran.
Currency influence
Geopolitical tensions impact gold prices
The dollar index eased to 100.71 from a previous high of 100.87, making gold cheaper for overseas buyers.
However, higher crude oil prices and a stronger dollar have been weighing on gold prices despite traditional safe-haven demand.
Ravi Singh, Chief Research Officer at Master Capital Services, noted that "the renewed geopolitical conflict has shifted focus back to the Federal Reserve's interest rate outlook."
Market indicators
Key levels for gold and silver today
Singh observed that MCX gold is maintaining a clear lower highs and lower lows formation on the daily chart.
He said, "The next important support is placed near ₹1,36,000 while on the upside, the 21-day EMA around ₹1,44,000 is expected to act as a strong resistance."
Manoj Kumar Jain of Prithvifinmart Commodity Research also provided key support and resistance levels for both gold and silver in today's session.
Investment strategy
Accumulate gold, silver in SIP mode: Jain
Jain recommended long-term investors to accumulate gold and silver in SIP mode during this market fall.
However, he stressed the need for a stop loss at ₹1,39,650 in gold and ₹2,14,000 in silver on closing basis for long positions.
SS WealthStreet founder Sugandha Sachdeva also highlighted key support levels for international and domestic markets, while cautioning that the broader trend continues to favor correction and consolidation.