Gold Prices Soar: What’s Ahead for the Precious Metal?
Safe-haven demand from geopolitical tensions pushes gold and silver prices up.
Gold prices have reached a new high. They hit Rs 1,01,078 per 10 grams on the MCX (August futures). This happened after gold closed above Rs 1 lakh for the first time last Friday. The increase is due to global equity pressures and rising crude oil prices.
Silver July futures remained steady near recent highs. They started trading at Rs 1,06,464 per kg today. Both gold and silver ended positively in the last trading session. Gold August futures settled at Rs 1,00,276 per 10 grams, up by 1.91%. Silver July futures closed at Rs 1,06,493 per kg, gaining 0.57%.
Why Are Gold and Silver Prices Increasing?
Last week, gold and silver prices jumped. Investors are looking for safe places due to the Israel-Iran conflict and a weaker dollar. Falling global equity markets and rising crude oil prices also help push precious metal prices higher.
Manoj Kumar Jain from Prithvifinmart Commodity Research explains that geopolitical tensions are driving gold and silver prices. Gold prices have gone beyond $3,450 per troy ounce. They might reach new record highs in international markets. Silver is likely to follow this trend in the coming trading sessions.
Jain adds, “We expect gold and silver prices to stay volatile this week. This is due to changes in the dollar index and geopolitical tensions. Gold prices could hold key support at $3,284 per troy ounce. Silver prices could hold at $34.00 per troy ounce on a weekly closing basis.”
Rahul Kalantri, VP Commodities at Mehta Equities, says, “Global equities are under pressure and crude oil is surging. This supports precious metals. Gold may retest its lifetime high soon. Silver is expected to follow. A weaker rupee could further boost domestic bullion prices.”
The US Dollar Index, DXY, is trading near 98.28. It has increased by 0.10 or 0.10%.
Trading Strategy for Gold and Silver
Gold Trading Levels
- Support: Rs 99,650-99,100
- Resistance: Rs 1,01,100-1,01,800
Silver Trading Levels
- Support: Rs 1,05,800-1,05,000
- Resistance: Rs 1,07,200-1,08,000
Recommendations
- Avoid short positions in gold and silver due to the Israel-Iran conflict.
- Buy gold between Rs 99,600-99,100. Take profit at Rs 1,01,100-1,01,800.
- Buy silver between Rs 1,05,000-1,04,000. Take profit at Rs 1,07,200-1,08,000.
- Be cautious and stick to these levels.
Additional Trading Levels by Rahul Kalantri
- Gold Support: Rs 99,620-99,390
- Gold Resistance: Rs 1,00,650-1,00,940
- Silver Support: Rs 1,05,550-1,04,750
- Silver Resistance: Rs 1,06,300-1,06,950
Disclaimer: The views and recommendations on the stock market and other asset classes given by experts are their own. They do not represent the views of The Times of India.
