Mumbai: Gold and silver prices traded higher on Monday, with precious metals surging up to 1 per cent supported by a weaker US dollar and easing inflation concerns after crude oil prices plunged following the suspension of hostilities between the United States and Iran.
On the Multi Commodity Exchange (MCX), gold futures (August) opened at Rs 1,43,575 per 10 grams, compared with the previous close of Rs 1,43,106.
At around 12:10 pm, gold was trading at Rs 1,44,173 per 10 grams, up Rs 1,067 or 0.75 per cent. During the session so far, the yellow metal touched an intraday high of Rs 1,44,230, an increase of about 0.8 per cent.
Silver futures (September) also traded higher. The white metal rose as much as 1.26 per cent to touch an intraday high of Rs 2,24,955 per kg. At the last count, it was trading at Rs 2,24,844, up Rs 2,706 or 1.22 per cent.
In the international market, spot gold gained about 1 per cent to trade near $4,100 per ounce, while silver rose nearly 1 per cent to around $59 per ounce.
According to market experts, gold rebounded from a nine-month low as the sharp decline in crude oil prices eased inflation concerns after the US and Iran paused military operations. Lower oil prices also weakened the US dollar, making bullion more attractive to investors.
The dollar index slipped to around 101.2 on Monday, surrendering part of last week’s gains as easing geopolitical tensions reduced concerns over energy supply disruptions.
Experts expect the near-term outlook for both precious metals to remain cautiously positive.
For MCX Gold, immediate resistance is seen in the Rs 1,45,500-1,46,000 range, while support lies at Rs 1,43,500-1,43,000. A sustained move above the resistance zone could strengthen the recovery.
For MCX Silver, immediate resistance is placed at Rs 2,26,000-2,26,500 per kg, followed by Rs 2,28,000-2,28,500, while support is seen in the Rs 2,23,000-2,22,300 range. Analysts said prices need to hold above current levels and reclaim the immediate resistance zone to gather further upside momentum.
(IANS)
