Gold prices trade consistently between multiples of the dollar index, US bond yields; silver costs Rs 91,200/kg
Precious metal prices: Gold prices in the Wednesday session (January 8) rose amid a stronger dollar and gains after the latest US jobs data indicated that the Federal Reserve may slow down its rate-cutting cycle.
At 12:33 pm, Gold February futures on MCX traded up just 0.1 percent or Rs 74 at Rs 77,605 per 10 gm, while March silver futures were up 0.14 percent or Rs 131 per Rs 91,004 per kg.
On Tuesday, gold and silver settled positively in international markets. Gold February futures settled at $2,665.40 per troy ounce, up 0.68 percent and March futures settled at $30.686 per troy ounce, up 0.34 percent. The trend was followed in the domestic markets as well, with the Gold February futures contract touching Rs 77,531 per 10 grams with a gain of 0.48 percent and the March silver futures contract touching Rs 90,873 per kg with a gain of 0.35 percent.
Strong bank purchases support gold markets
Dr. Renisha Chainani, Head of Research at Augmont said, “In November 2024, the central bank increased its gold holdings by 53 tonnes, indicating continued strong buying. The Reserve Bank of India resumed its buying spree in 2024, increasing the -8 in its gold. This brings YTD purchases to 73 tonnes and total gold reserves to 876 tonnes, maintaining the position its. as the second largest consumer in 2024 after Poland.”
The People’s Bank of China also increased its gold reserves by 5 tonnes, reflecting increased demand as the global economic crisis continues, he added.
Gains remained limited due to a rally in the dollar index and US bond yields
The dollar rose and the benchmark 10-year Treasury yield rose to an eight-month high after better-than-expected data on Tuesday. US job openings in November rose to 8.098 million, better than the 7.7 million expected, and still better than October’s figure of 7.839 million.
And, on the sidelines, gains in bullion were tested after the US services PMI reading reached 54.1.
Gold and silver price support and resistance levels
Gold has support at $2650-2634, while resistance is at $2680-2694 per troy ounce and silver has support at $30.45-30.20, while resistance is at $30.88-31.20 per troy ounce in today’s session. At mcx, gold has support at 77220-77000 and resistance at 77800-78000 while silver has support at 90150-89500 and resistance at 91650-92400.
Trading strategy
We suggest waiting for corrective dips to initiate new long positions in gold and silver, said Manoj Jain-Commodity Expert-India Nivesh.
