Gold and silver prices today: Silver outperforms yellow metal, may cross record soon

Gold prices opened on the Multi Commodity Exchange (MCX) on Tuesday at Rs 59,264 per 10 grams and hit an intraday low of Rs 59,215. In the international market, prices hovered around $1,955.45 per troy ounce. Meanwhile, silver opened at Rs 75,530 per kg and hit an intraday low of Rs 75,440 on the MCX. The price hovered around $24.84 per troy ounce in the international market.

Anuj Gupta, Vice President of IIFL Securities, said, "Yesterday, gold prices corrected by 0.36% and closed at 59122 levels on the back of higher-level profit booking. However, the dollar weakness curbed the sharp correction in gold and gold recovered from lower levels yesterday. The dollar index is trading at 99.56 levels, and now it is anticipating that FOMC may keep interest rates stable, which will be positive for the bullions. We expect the dollar index to go down further and test 99 to 97 levels. In the international market, it is trading at $1955 levels per ounce."

Gupta sees technically strong support at 58900 levels and then 58650 levels, resistance at 59500 and 59800 levels. For today One can buy on dips around 58800-58900 levels with a stop-loss of 58650 and for the target of 59400 to 59500 levels. Gold may test $1960 to $1965 levels in international markets."

US inflation and FED's further direction on interest rate is the main theme driving precious metals. Sachin Kothari, Director of Augmont Gold for All, said, "Last week, the CPI and PPI decreased more than anticipated. The annual increase in consumer prices was 3%, the smallest since March 2021. With prices ending the week up more than 8% above $25/oz (Rs 75000), silver is the metal receiving significant attention. Silver has crossed the important resistance of $25 (Rs 75000); the next level to watch for is $26 (Rs 78000). It seems silver could outperform gold, cross-record high prices in India, and touch the Rs 80000 level in the next few trading days."

Gold prices traded steady in early morning trade as traders awaited the U.S. Federal Reserve meeting due next week for clues about its monetary tightening path.

Manav Modi, Analyst, Commodity & Currency, MOFSL, said, "The dollar was hovering below the 100 mark, hovering close to its April 2022 lows of 99.60 it hit last week, while US 10Y yields continue to trade below 4% mark. US inflation data last week triggered an up-move in bullions, as it increased the bets that the Federal Reserve was close to reaching peak interest rates for the year."

Interest rate futures showed markets were pricing in another rate hike at the Fed’s July 25-26 meeting. Governor Jerome Powell had earlier highlighted the majority view that two additional rate increases would be needed. 

"Focus today will be on the US Retail sales and industrial production data; which if are recorded weaker than expectations it could further support metal prices," said Modi.

Amit Khare, Associate Vice President Research at Ganganagar Commodity Limited (GCL), said, "August Gold closed at 59135(-0.32%), and September Silver closed at 75567(-0.52%), Bullion's daily charts are now showing some profit booking, Momentum Indicator RSI also indicating the same, So traders are advised to book profit in longs and can create fresh short positions in Gold and Silver near given residence level one with the stop loss of resistance level two and book near given support levels: Gold August Support 59000/58900 and Resistance 59300/59600. Silver September Support 75000/74000 and Resistance 76000/76800."