Gold and silver prices extended their gains on Wednesday and touched fresh highs in domestic futures trade amid global uncertainty and escalation of the trade war.
On the Multi Commodity Exchange (MCX), gold February 5 futures were trading at Rs 1,57,480 per 10 grams, up Rs 6,915, or 4.59 per cent. The contract moved higher during the session and remained near its day’s high levels.
Silver March 5 futures were quoted at Rs 3,32,710 per kilogram, rising Rs 9,038, or 2.79 per cent. The silver contract also traded firmly and hit fresh highs during the session.
Intraday Range and Contract Details on MCX
Gold February futures recorded a day’s low of Rs 1,51,575 per 10 grams and a high of Rs 1,58,339 per 10 grams. The 52-week low for the contract stands at Rs 98,169, while the 52-week high is Rs 1,58,339.
The contract opened at Rs 1,51,575, and the previous close was Rs 1,50,565. Trading volume was 8,94,900 units, while open interest stood at 12,996 lots. The lot size for the contract is 100 units.
Silver March futures recorded a day’s low of Rs 3,20,007 per kilogram and a high of Rs 3,34,027. The 52-week low for the contract is Rs 1,09,741, while the 52-week high is Rs 3,34,027.
The contract opened at Rs 3,22,566, while the previous close was Rs 3,23,672. Trading volume was 1,66,230 units, while open interest stood at 10,016 lots. The lot size for the silver contract is 30 units.
Global and Domestic Market Settlement
On Tuesday, gold and silver had settled on a positive note in the international markets. Gold February futures were settled at $4,765.80 per troy ounce, up 2.03 per cent. Silver March futures were settled at $94.636 per troy ounce, gaining 0.87 per cent.
Domestic markets had also ended higher in the previous session. Gold February futures settled at Rs 1,50,565 per 10 grams, registering a gain of 3.38 per cent. Silver March futures settled at Rs 3,23,672 per kilogram, rising 4.32 per cent.
Global Factors Supporting Precious Metals
Gold and silver prices have gained amid global uncertainty due to the escalation of the trade war. Prices also moved higher after the US Supreme Court further postponed any ruling on the legality of tariffs announced by US President Donald Trump.
Global equity markets have seen sharp declines amid concerns over the trade war and geopolitical developments. Panic selling in riskier assets has supported safe-haven buying in precious metals.
The US 10-year bond yields touched four-month highs due to panic selling in Japanese bonds. This also supported the prices of gold and silver. Weakness in the rupee has further supported domestic precious metal prices.
Outlook and Key Support-Resistance Levels
Market participants are witnessing high volatility in gold and silver prices. Manoj Kumar Jain said silver prices could hold support at $84 per troy ounce, while gold prices could hold support at $4,440 per troy ounce on a closing basis.
He said prices are expected to remain volatile during the week due to movements in the dollar index, upcoming speeches by the US President, and ongoing geopolitical tensions.
According to him, gold has support at $4,740 to $4,685 per troy ounce, while resistance is seen at $4,810 to $4,855 per troy ounce. Silver has support at $92.40 to $89.80 per troy ounce, while resistance is placed at $96.60 to $98.80 per troy ounce.
In the domestic market, gold has support at Rs 1,48,800 to Rs 1,46,600 and resistance at Rs 1,52,500 to Rs 1,55,000. Silver has support at Rs 3,16,000 to Rs 3,08,500 and resistance at Rs 3,30,000 to Rs 3,38,000.
Manoj Kumar Jain said, “We suggest strictly avoiding short selling in gold and silver and follow a buy on dips strategy until gold is holding above Rs 1,44,000 and silver is holding above Rs 3,03,000.” He added that the expected targets for silver are at Rs 3,38,000.