Gold, silver prices: Gold prices touch two-year high of Rs 55,546 in India, silver at Rs 70,573

Gold and silver prices: Gold prices on Tuesday touched a two-year high of Rs 55,546 per 10 gram, while silver prices surged by 1.4 per cent to Rs 70,573 per kg, as MCX readings. In the global markets, gold prices touched a six-month high due to the weakness in the US dollar, which made the yellow metal more attractive for investors. In the international market, spot gold was up 0.8 per cent at $1,838.69 per ounce while spot silver was 1.1 per cent up to $24.25. 

“Bullions made a promising start to 2023, with gold witnessing fresh gains on the first trading day of the year after a remarkable rally to 1,822 in December. Following the initial gains, precious metal prices traded range bound as most of the western market closed on Monday due to the New Year holiday. Investors are waiting for the FOMC meeting minutes outcome which will be released this week. According to the technical indicators, the bullion market prices may see extended gains. The 20- and 200-day simple moving averages (SMAs) have recently bullishly crossed each other, endorsing the positive trend in the short-term picture,” said Rahul Kalantri, Vice-President, Commodities, Mehta Equities Ltd. 

Also read: Gold at Rs 62,000 in 2023? Here's what experts have to say about yellow metal demand

Domestic prices 

On Tuesday, 10 grams of 24-carat gold in Mumbai and Kolkata can be bought and sold at Rs 55,580. In Delhi, the same amount of gold can be bought at Rs 55,730, whereas in Chennai, one can buy it for Rs 56,630, which is the highest among all metropolitan cities. Except for Kerala, gold prices change daily in all states due to currency exchange rates, excise duty, state taxes, and making charges of jewellers. 

The prices for 22-carat gold in Mumbai, Kolkata, Delhi, and Chennai are Rs 50,950, Rs 50,950, Rs 51,100, and Rs 51,910, respectively.

“Gold has support at $1,814-1801 while resistance is at $1,838-1,850. Silver has support at $23.72-23.55, while resistance is at $24.22-24.40. In INR terms gold has support at Rs 54,950-53,750, while resistance is at Rs 55,480-54,650. Silver has support at Rs 69,050-68,580, while resistance is at Rs 70,420–70,780,” Kalantari added.

In 2022, the yellow metal saw a bumpy ride. Though the Russia-Ukraine war pushed the gold prices to near all-time highs in Q1, in consecutive quarters, dollar strength crushed the commodity to two-year lows in Q3. After touching a high of $2,078.8/ oz post-war, COMEX gold fell to a two-year low of $1,618.3/ oz, as the Federal Reserve took the fed funds rate to the highest since 2008.  

Domestic gold prices were more resilient, particularly due to the sharp depreciation in Rupee, which fell by more than 10 per cent year to date.   

Silver’s price, on the other hand, after seeing a dull year saw a rebound in November after dropping below the psychological threshold of $24 per troy ounce to trade below $18 in late September.