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Pushed by safe-haven buying amid geopolitical risks and volatility in the dollar index, gold prices surged significantly to trade near their 3-week high of Rs 98,204/10 grams. Today, gold August futures contracts on MCX opened at Rs 97,838/10 gm.

The prices witnessed some profit booking after Monday’s sharp rally, opening lower by Rs 115.

Meanwhile, silver July futures contracts also opened slightly lower today after yesterday’s massive rally that took the prices of the white metal beyond the Rs 1 lakh/kg mark. On Tuesday, the same were trading 0.94% lower at Rs 1,00,061/kg (down by Rs 950).

On Monday, gold and silver settled on a positive note in the domestic and international markets. Gold August futures contract settled at Rs 97,953 per 10 grams with a gain of 2.17% and silver July futures contract settled at Rs 1,01,011 per kilogram with a gain of 4.12%.

Gold and silver post solid gains amid renewed safe-haven buying due to a Ukrainian drone strike on Russia over the weekend and a sell-off in the dollar index. Gold prices hit 3-week highs, and silver prices also hit 2-month highs in the international markets.

Gold and silver prices also gained after the U.S. President said that China has violated its trade agreement and asked to impose higher tariffs. Fresh trade tensions between US-China also supported safe-haven buying for precious metals.The dollar index slipped below 99 marks and hit 6-week lows amid pressure on the U.S. economy due to higher trade tariffs and selling in the U.S. treasuries by major global central banks.Today, the US Dollar Index, DXY, was hovering near the 98.91 mark, surging 0.19 or 0.20%.

“We expect gold and silver prices to remain volatile this week amid volatility in the dollar index, geo-political tensions and volatility in the global bond markets; gold prices could hold its support level of $3,240 per troy ounce and silver prices could also hold $32.40 per troy ounce levels on a weekly closing basis,” said Manoj Kumar Jain of Prithvifinmart Commodity Research.

Rahul Kalantri, VP Commodities at Mehta Equities, noted, “Investor sentiment turned defensive as President Trump’s announcement to double tariffs on steel and aluminium, rekindling trade war concerns with China. Escalating tensions in the Russia-Ukraine conflict further strengthened the safe-haven demand.”

How to trade gold?

Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:

• Gold has support at Rs 97,400-96,850 and resistance at Rs 98,200-98,850
• Silver has support at Rs 1,00,200-99,100 and resistance at Rs 1,02,400-1,04,000

Jain suggests buying silver on dips around the Rs 99,800-99,200 range with a stop loss of Rs 98,200 for a target of Rs 1,02,400-1,04,000.

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 57,272/8 grams while pure gold (24 carat) prices stand at Rs 61,040/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 57,392/8 grams while pure gold (24 carat) prices stand at Rs 61,168/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 56,816/8 grams while pure gold (24 carat) prices stand at Rs 60,536/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 7,143/8 grams while pure gold (24 carat) prices stand at Rs 60,928/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)