Silver, Gold Price Today: At which levels should you buy? Expert decodes

Silver, Gold Rate Today on 5 Feb: Gold and silver prices opened sharply lower on the Multi Commodity Exchange (MCX) on Thursday, February 5, after a volatile previous session.

At around 9 am, MCX gold was trading near Rs 1,49,305 per 10 grams, down about Rs 4,200 from the previous close. MCX silver saw heavier selling pressure and was trading around Rs 2,52,719 per kg, lower by nearly Rs 12,000.

Both precious metals were trading well off their previous levels, reflecting continued sharp swings in prices.

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How prices closed on Wednesday

In the previous session, domestic markets ended on a mixed note. Gold April futures on MCX settled at Rs 1,53,046 per 10 grams, registering a loss of 0.50 per cent. Silver March futures settled higher at Rs 2,68,850 per kg, up 0.31 per cent.

In the international market, gold April futures settled at $4,950.80 per troy ounce, up 0.32 per cent, while silver March futures closed at $84.851 per troy ounce, up 1.69 per cent.

Expert view

According to Manoj Kumar Jain, “gold and silver prices show very high price volatility. Markets extended gains in the early trading session but moved off the day’s high amid possible US-Iran nuclear deal talks.”

He said, “As per latest reports, the US President is not agreed for change of venue from Istanbul to Oman for nuclear deal talks with Iran. The US-Iran nuclear deal talks are called off and increased uncertainty once again could support safe-haven buying for both precious metals.”

Jain said that the delay in the release of US non-farm payroll data could also provide support to gold and silver prices. However, he added that other global developments may cap upside.

He said, “The US and Chinese Presidents talking over the phone and rebound in the dollar index could limit gains.”

Outlook for the week

Jain said price volatility is expected to remain elevated. He said, “We are experiencing very high price volatility in both precious metals and we expect gold and silver prices to remain volatile this week amid volatility in the dollar index, partial shutdown in the US and geo-political tensions.”

On a weekly closing basis, he said silver prices could hold support at $71 per troy ounce, while gold prices could hold support at $4,440 per troy ounce.

Key levels to watch

Jain said that in the international market, gold has support at $4,884–4,770 per troy ounce and resistance at $5,000–5,145 per troy ounce in today’s session. Silver has support at $81.20–78.00 per troy ounce, while resistance is seen at $88.80–92.40 per troy ounce.

On MCX, he said gold has support at Rs 1,50,500–1,47,700 and resistance at Rs 1,56,800–1,60,000. Silver has support at Rs 2,61,100–2,55,000 and resistance at Rs 2,78,000–2,86,000.

Trading view

Jain said, “We suggest buying gold above Rs 1,54,000 with a stop loss below Rs 1,51,800 for the target of Rs 1,56,800–1,58,500. We also suggest buying silver above Rs 2,70,000 with a stop loss below Rs 2,61,100 for the target of Rs 2,78,000–2,84,000.”