Precious metal prices: Gold, silver prices fall tracking international rate movement; gold 1% away from record high

Precious metal prices (January 17, 2024): Gold prices in Friday's session traded with a cut tracking losses in the international markets. At around 10:36 am, gold February futures were down 0.23 per cent or Rs 186 at Rs 79,040 per 10 gm. Meanwhile, silver March futures were down 0.56 per cent or Rs 520 at Rs 92,283 per kg.

Internationally, on the COMEX, gold February futures were up 0.2 per cent at $ 2,745.5 per ounce.

In the previous day's trade, gold and silver extended their gains amid a cool-off in the dollar index and US 10-year bond yields.

Dr. Renisha Chainani, Head of Research at Augmont.Fundamental pointed out that gold is just 1 per cent away from its record-high of Rs 80000, after a modest core inflation reading this week that boosted bets for a more dovish Federal Reserve policy. The most recent U.S. economic data put additional pressure on Treasury yields, pushing gold prices to a more-than-month high.

On Thursday, gold and silver futures settled on a mixed note, with the gold February futures contract settling at Rs79,226 per 10 grams with a gain of 0.66 per cent while silver March futures contract settled at Rs 92,803 per kilogram with a loss of 0.06 per cent.

However, both gold and silver extended gains in the international markets and hit their 1-month highs. Also, safe-haven demand was observed in the precious metals amid uncertainties around economic policies under the Trump administration.

The US economic data released on Thursday were mixed and lend support to the precious metals. The U.S. jobless claims surged to 2,17,000 last week and retail sales and core retail sales data was also lower than expected and supportive for the prices of precious metals.

Support and Resistance levels

Manoj Jain- Commodity Expert- India Nivesh said, "Gold and silver are holding its key support levels of $2,634 and $29.50 per troy ounce respectively on a weekly closing basis in the international markets. We expect gold and silver prices to remain volatile in today’s session amid volatility in the dollar index and ahead of the Chinese economic data."

Gold has support at $2734-2722, while resistance at $2764-2780 per troy ounce and silver has support at $31.45-31.10, while resistance is at $32.00-32.40 per troy ounce in today’s session. On the MCX, gold is having support at 79000-78720 and resistance at 79500-79770 while silver is having support at 92220-91500 and resistance at 93660-94400, he added

Trading strategy

Jain suggests buying gold on dips around Rs 78900 with a stop loss of Rs 79660 for the target of Rs 79500.