Today’s gold prices reached a 2-month high, while silver prices increased

With futures on MCX reaching a more than two-month high of 52261 per 10 gramme, up 0.2 percent from the previous close, gold prices in India continued their current upward trajectory. Futures for silver increased by 0.5% to 58,780. Over the past few months, gold has come under pressure as major central banks across the world have increased interest rates in an effort to rein in spiralling inflation. Up until Friday, when the government increased the import duty, the price of yellow metal in India was range-bound.

Prices for gold were stable at $1,809.45 per ounce on the international markets. Spot silver increased among other precious metals by 0.7 percent to $20.09 for an ounce.

“COMEX gold trades near $1810/oz supported by lower bond yields, inflation concerns and increasing growth worries and renewed virus concerns in China. However, weighing on price is monetary tightening stance of Fed and other central bank, firmness in US dollar and continuing ETF outflows and possible slowdown in Indian demand due to import duty hike,” said Ravindra Rao, VP- Head Commodity Research at Kotak Securities.

During periods of economic crisis, such as a recession, the yellow metal is regarded as a secure place to keep assets.

“Gold fell sharply in last few days but has managed to hold near $1800/oz level which shows some buying interest. However, a sustained rise is unlikely given the focus on FOMC minutes and US non-farm payrolls data,” he added.

Gold Technical Outlook

“Gold has support at $1796-1784, while resistance is at $1818-1827. Silver has support at $19.55-19.20, while resistance is at $20.20-21.45. In rupee terms, gold has support at ₹51,640–51,420, while resistance is at ₹52,220–52,440. Silver has support at ₹57,350-56,850, while resistance is at ₹58,380–58,710,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.