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Gold prices extended their strong upward momentum on February 9 as a weaker US dollar rising expectations of interest rate cuts, and ongoing geopolitical uncertainty boosted demand for safe-haven assets.
On the Multi Commodity Exchange (MCX) gold April futures surged by around 2%, to trade near Rs. 1,58,500 per 10 grams during morning trade. Silver March contracts also jumped nearly 6%, to Rs. 2,64,885 per kg.
The price of 24K gold decreased by Rs. 224 in early trade on Monday, with ten grams of the precious metal trading at Rs. 1,58,840.
The price of 22K gold also declined by Rs. 205 with ten grams of the yellow metal selling at Rs. 1,45,600.
The price of ten grams of 24K gold stood at Rs. 1,58,840 in Mumbai and Kolkata and Rs. 1,59,820 in Chennai.
In Delhi the price of ten grams of 24K gold stood at Rs. 1,58,990.
A softer US dollar has been a major tailwind for precious metals. As reported by Reuters the dollar index slipped to its lowest level in several sessions and it makes gold and silver cheaper for overseas buyers and improving global demand.
Geopolitical uncertainty has further supported prices. While recent US-Iran nuclear talks were described as a positive start, underlying tensions is still unresolved. It keeps safe-haven demand intact.
Expectations of further monetary easing by the US Federal Reserve have also contributed to the rally.
Comments from Mary Daly highlighted the possibility of one or two additional rate cuts to address labour market weakness. It reinforces the bullish outlook for non-yielding assets like gold and silver.
In the international market, spot gold traded above $5,020 per ounce, while silver remained firm after a strong surge in the previous session, indicating sustained global interest.
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Internationally gold has support at $4,910 and $4,840 while resistance is at $5,050 and $5,122 per troy ounce. Silver has support at $73.80 and $71.10 while resistance is at $80.40 and $83.80 per troy ounce in today’s session.
On the MCX gold has support at Rs. 1,54,000 and Rs. 1,51,800, and resistance is at Rs. 1,57,700 and Rs. 1,60,000. Silver finds support at Rs. 2,44,000 and Rs. 2,36,600 and resistance is at Rs. 2,55,500 and Rs. 2,62,000.
