Gold and silver prices today: Yellow metal and silver shine on dollar weakness

Gold prices opened on the Multi Commodity Exchange (MCX) on Thursday at Rs 59,945 per 10 grams and hit an intraday low of Rs 59,920. In the international market, prices hovered around $1,977.75 per troy ounce. Meanwhile, silver opened at Rs 75,536 per kg and hit an intraday low of Rs 75,525 on the MCX. The price hovered around $25.16 per troy ounce in the international market.

Anuj Gupta, Vice President of IIFL Securities, said, "Yesterday, gold prices closed flat at 1.14% at 59782 levels. No fresh data came yesterday from the U.S. The trend of gold and silver is positive due to the weakness in the dollar. The dollar index is trading at 99.90 levels and now expects that FOMC may keep interest rates stable, which will be positive for bullion. We expect the dollar index to go down further and test 99 to 97 levels. In the international market, it is trading at $1986 levels per ounce."

Gupta sees technically strong support at 59400 levels and then 59000 levels, Resistance at 60000, and then 60400 levels. Today, one can buy on dips around 59400-59500 levels with a stop-loss of 59100 and for the target of 60000 to 60200 levels. Gold may test $1995 to $2000 levels in international markets.

Gold prices witnessed swings in a narrow range after inching higher by almost 1% at the start of this week.

Amit Khare, Associate Vice President at Ganganagar Commodity Limited (GCL), said, "MCX Gold and Silver gave a slightly positive closing yesterday. August gold closed at 59790(0.04%). September Silver closed at 76409(0.41%), Bullions daily charts are now showing some profit booking, trading at an overbought zone, 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 59500/59200 and Resistance 59900/60200. Silver September Support 75400/75000 and Resistance 76700/77300."

Manav Modi, Analyst, Commodity and Currency, MOFSL, said, "Along with volatility in the dollar index, weak economic data points, increase in expectations that the U.S. Federal Reserve might soon hit pause on its interest rate-hiking cycle is supporting an up-move in bullions."

The dollar index hovered around the 100 mark after marking a 15-month low last week; the U.S. 10Y yield trades steady after inching lower in the earlier session. The Fed is expected to raise rates by 25 bps in their meeting next week, keeping them in the 5.25%-5.5% range, CME's fed-watch tool also shows more than 95% probability for a 25 bps rate hike in the July meeting.

"The European Central Bank is also expected to raise rates by 25 bps next week. Yesterday's U.S. housing numbers were reported weaker than expected, putting some pressure on the dollar index. Focus today will be on the weekly jobless claims, forecast to rise to 242,000 from a seasonally adjusted 237,000 and Philly fed manufacturing index," said Modi.