Gold, silver lack lustre – The Hindu

Picture used for representational functions.

Valuable metals continued to maneuver increased in February with Comex gold scaling previous the psychological $2,900 mark. Gold costs marched into uncharted territory pushed by the financial uncertainty triggered by U.S. import tariff plans. 

The worth of Comex silver, nevertheless, didn’t share the identical enthusiasm and is but to cross its life-time highs. 

Underneath greenback’s shadow

Nonetheless, the strengthening of the U.S. greenback led to a cool-off in valuable metals costs up to now few days. 

After touching a brand new life-time excessive of $2,974 a couple of days in the past, Comex gold cooled off just lately and settled at $2,848.5 an oz. by the tip of February, representing a modest achieve of 0.48%. Comex silver closed 2.38% decrease at $31.49 an oz. by the tip of February.

Higher native tendencies 

The efficiency of valuable metals within the home market was comparatively higher, helped by the sustained weak point within the worth of the Indian rupee. 

MCX gold gained 2.42% to settle at ₹84,219 per 10-grams on the finish of February. MCX silver closed 0.91% decrease at ₹94,328 per kilogram. 

Comex gold worth turned a bit weak up to now few days and this weak point is more likely to persist within the short-term. After this anticipated cool-off, the value is anticipated to renew its long-term uptrend. 

Subsequent goal

As highlighted within the current updates, the following main goal for Comex gold is $3,050-$3,100. The constructive outlook for gold could be below menace provided that the value closes under $2,740-$2,760 vary. 

Comex silver continues to be a relative below performer compared to gold.

The short-term outlook isn’t too constructive for silver and the value might drop between $29.8 and $30.5. A transfer above $33.6 would point out the resumption of the long-term uptrend. Till this breakout occurs, count on silver worth to both stay vary sure or drift to decrease ranges.

Mirroring the sentiment within the international markets, the MCX gold worth, too, managed to hit file highs a couple of days in the past. The worth has nevertheless been consolidating in a variety up to now three days. A breakout above ₹86,800 would impart momentum to the uptrend and assist gold worth attain the following goal of ₹88,500-₹89,500 vary. 

Till this breakout occurs, count on home gold worth to stay subdued. The instant assist cum goal zone for MCX gold is ₹80,900-₹81,500.

MCX silver worth too dominated agency within the first half of February and the value additionally hit the goal zone of ₹1,00,500-₹1,05,500 talked about final month. The short-term outlook for silver is adverse and the value might drift decrease to ₹89,500-₹90,500 zone. Anticipate weak point to persist except the value strikes above ₹97,500.

To summarise, the valuable metallic worth is more likely to stay subdued within the short-term. The long-term pattern nonetheless stays constructive.

(The writer is a Chennai-based analyst/dealer. The views and opinions featured on this column are based mostly on the evaluation of short-term worth actions in gold and silver futures at COMEX & Multi Commodity Alternate of India. This isn’t meant to be a buying and selling or funding recommendation.)