Mumbai, February 11 (IANS). After the huge fall on Tuesday, there is a strong movement in the commodity market on Wednesday, the third trading day of the week and a strong recovery is being seen in the prices of precious metals gold and silver. There is a bullish atmosphere in both the precious metals on MCX since morning. Especially silver, which had fallen to around Rs 10,000 on Tuesday, seems to be returning to the bullish path again today.
In early trade on Wednesday, gold for April delivery rose by almost one per cent to an intra-day high of Rs 1,58,436 per 10 grams on the Multi Commodity Exchange (MCX). At the same time, silver for March delivery rose by nearly 3 percent to reach the day’s high of Rs 2,62,892 per kg.
However, till the time of writing the news (around 12.56 pm), gold with expiry of April 2 was trading at Rs 1,58,357 per 10 grams on MCX with a rise of about 1 percent i.e. Rs 1,554, while silver with expiry of March 5 was trading at Rs 2,61,949 per kg with a rise of 3.72 percent i.e. Rs 9,401.
However, if compared with record levels, both the metals are still far below their all-time high. On January 29, gold touched a high of Rs 1,83,000 and silver touched a high of Rs 4,20,000.
After weak consumer spending figures in the US, expectations have increased that the US Federal Reserve may cut interest rates, due to which gold and silver prices rose.
The dollar index also weakened slightly from 96.80 to 96.59 in early trade. Due to the weakening of the dollar, gold and silver become a little cheaper for foreign investors, which increases demand. This also supported the prices.
An increase in the prices of gold and silver was also seen in the international market. Retail sales figures for the month of December in America were lower than expected, which indicated that people’s spending is decreasing and the pace of the economy may slow down.
Experts say that the market is now expecting interest rate cuts at least three times this year, whereas earlier the possibility of cuts was expected twice. Investment options like gold and silver benefit from low interest rates.
Comex Gold is currently trading in the range of $4,900 to $5,100. Earlier it had reached a high level of $5,500 to $5,600, after which there was some decline. Market experts believe that this decline is normal profit-taking and the position of gold remains strong in the long term.
It has also been said about silver that its demand and supply shortage in industries is supporting its prices in the long run, although there are more fluctuations in it. The level of $65 to $70 is considered a strong support for Comex Silver.
According to analysts, for gold, there is support at Rs 1,55,500 and Rs 1,54,000, while there can be resistance at Rs 1,57,700 and Rs 1,59,000. For silver, Rs 2,44,000 and Rs 2,48,800 are the support levels, while resistance can be seen at Rs 2,60,000.
Investors are now waiting for US employment (non-farm payrolls) and inflation data to give signals about the Fed’s further interest rate policy.
–IANS
DBP/
