Gold, silver stay range-bound – The Hindu BusinessLine

Extending the lacklustre development witnessed in January, valuable metals remained range-bound and the worth motion was devoid of any route in February. The energy within the U.S. greenback and the restoration within the fairness markets dented sentiments in the direction of the dear metals.

Additionally learn: Is it the best time so that you can purchase or promote gold? 

The one constructive side was that the Comex gold worth managed to commerce above the psychological $2,000-level all through the month.

Comex gold closed 0.24 per cent decrease in February to finish at $2,052.8. An analogous development was witnessed in Comex silver as effectively. The white steel closed 0.78 per cent decrease to settle at $22.9 an oz..

Mirroring the development within the international markets, MCX gold closed 0.33 per cent decrease in February and closed at ₹62,540 per 10-gram. MCX silver closed 3 per cent decrease at ₹71,265 per kilogram.

As noticed final month, Comex gold remains to be oscillating within the $2,000-2,100 vary. A decisive get away from this vary will set the tone for the subsequent huge transfer. A transfer previous $2,100 will impart momentum to the upside and will assist Comex gold attain the subsequent goal zone of $2,150-2,160 zone. However, a fall under $2,000 could be an indication of weak point and will push the worth to $1,935-$1,950 zone.

Just like gold, Comex silver too is but to interrupt out of the $21.9-26.4 vary that the worth has been confined to for a number of months now. Solely a get away of this vary, would set off the subsequent huge transfer. Till then anticipate silver costs to stay range-bound and risky. A fall under $21.9 could be an indication of weak point and the worth might then slide to $19.2-$19.8 zone.

Mirroring the worldwide development, the worth motion in MCX gold too was devoid of any development in February. The value remains to be caught in the identical vary of ₹61,300-64,200. As noticed final month, a transfer above ₹64,200 would impart momentum to the upside and the worth might then head to ₹65,500-66,000. A fall under ₹61,300 could be an indication of weak point and will push the gold worth to ₹59,500-60,200.

Silver too range-bound

MCX silver worth too remains to be confined within the ₹70,400-74,000 zone. The short-term worth route is dependent upon the get away from this vary. Above ₹74,000 could be an indication of energy and will push the worth greater to ₹76,500-77,500.

A fall under ₹70,400 would impart weak point and will push MCX silver worth to ₹68,000-68,500. Till the worth breaks out of the above vary, anticipate risky range-bound worth motion to persist.

Additionally learn: Gold costs decline as merchants stay cautious forward of FOMC assembly minutes

To summarise, anticipate range-bound and risky worth motion to persist in valuable metals. As noticed final month, solely a get away from the prevailing vary would result in any significant transfer.

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