Gold and silver prices today: Slight increase in yellow metal following weekly loss

Gold prices opened on the Multi Commodity Exchange (MCX) on Monday at Rs 58,950 per 10 grams and hit an intraday low of Rs 58,930. In the international market, prices hovered around $1,922.95 per troy ounce. Meanwhile, silver opened at Rs 71,711 per kg and hit an intraday low of Rs 71,700 on the MCX. The price hovered around $23.01 per troy ounce in the international market.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said, “The gold price will continue to trade in a broader range of $1905 to $1935. From a technical perspective, Comex gold has strong support at $1915. Until the price holds above this level, a recovery in gold's price is likely to see it move towards the $1929 level. A fall below $1915 will open the door towards the $1905 level. The MCX Gold October future is expected to trade in a range of 58700 to 59300. In local market gold price trend can be diverge from international market due to Rupee volatility. Below $1905 next support at $1880 and above $1935 next Resistance at $1960 levels."

Next event FOMC meeting will be in focus and traders will keep their eyes on the Dollar Index and bond yield. Dollar index Support at 103 and resistance at 106 levels. Festival demand may be seen on the lower levels in the domestic market.

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Amit Khare, Associate Vice President at GCL Broking, said, "October Gold closed at 58898(-0.16%) and December Silver closed at 71563(-0.30%). Bullions daily charts are looking good, trading near demand Zone. Momentum Indicator RSI also indicating the same. So traders are advised to make fresh buy positions in Gold and Silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold October Support 58850/58600 and Resistance 59100/59300. Silver December Support 71500/70700 and Resistance 72300/73000."

Gold prices inched higher today in the early morning trade, after reporting a weekly loss, supported by a retreat in the dollar and expectations regarding a pause in the next Fed meeting.

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "The Dollar index briefly was hovering above the 105 mark last week but failed to hold above the same supporting an up-move in bullions. While the US 10Y yields is not giving up its gains, trading around 4.3%."

"Fed officials were quite active in the previous week preparing the market for one more rate hike this year as they continue to see inflation as a concern, however they have also cemented a data-dependent approach in the market through their speeches. It was a holiday shortened week but, better than expected data from the US weighed on metal prices. Bets for a pause in the next Fed meeting continues to be more than 90% according to the CME Fed-Watch tool. The U.S. Consumer Price Index (CPI) for August is due on Wednesday and is expected to shape the Fed’s interest rate decisions this year," Modi.