Gold prices have experienced a decline from recent record highs, with profit booking seen in the bullion market following U.S. Federal Reserve Chairman Jerome Powell’s testimony. On the Multi Commodity Exchange (MCX), Gold April futures were trading at Rs 85,056 per 10 grams, down 0.55% or Rs 467, after hitting an all-time high of Rs 86,360 per 10 grams.
Silver also saw a decrease, with March futures trading at Rs 94,041 per kilogram, marking a 0.56% drop or Rs 527. On Tuesday, both gold and silver closed weaker in domestic and international markets. The Gold April futures contract settled at Rs 85,523 per 10 grams, down 0.34%, while Silver March futures closed at Rs 94,568 per kilogram, down 0.76%.
The pullback in prices followed significant volatility after Powell’s remarks, where he dismissed the possibility of immediate rate cuts. Internationally, gold prices reached a peak of $2,968 per troy ounce, and in domestic markets, they briefly touched the Rs 86,000 mark, but were unable to maintain those levels.
Powell stated that while the U.S. economy is in a favorable position, inflation remains well above the Federal Reserve’s target of 2%. This caution on potential rate cuts added to market volatility. Manoj Kumar Jain, a commodity research analyst at Prithvi Finmart, noted that Powell’s testimony, combined with U.S. inflation data, could have a significant impact on metal markets.
As of today, the U.S. Dollar Index (DXY) was at 108.01, gaining 0.05 or 0.04%, further contributing to fluctuations in gold and silver prices. Jain expects continued volatility throughout the week, particularly in response to the dollar index and upcoming inflation data.
Gold and Silver Price Range Forecasts
Jain suggests that gold at MCX has support at Rs 85,100-84,660, with resistance at Rs 85,820-86,350. For silver, support levels are at Rs 93,750-92,800, and resistance is at Rs 95,200-96,000. Jain recommends selling gold around Rs 85,800, with a stop loss at Rs 86,220 and a target price of Rs 85,000.
Gold Prices in Physical Markets
Delhi: Standard gold (22 carat) is priced at Rs 57,640 per 8 grams, while pure gold (24 carat) is priced at Rs 61,496 per 8 grams.
Mumbai: Standard gold (22 carat) is priced at Rs 56,680 per 8 grams, and pure gold (24 carat) is priced at Rs 60,408 per 8 grams.
Chennai: Standard gold (22 carat) is priced at Rs 56,760 per 8 grams, and pure gold (24 carat) is priced at Rs 60,472 per 8 grams.
Hyderabad: Standard gold (22 carat) is priced at Rs 57,040 per 8 grams, while pure gold (24 carat) costs Rs 60,744 per 8 grams.
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