Gold Inches Up, Silver Hits Record High Amid Spot Demand and Dollar Weakness

New Delhi: Gold prices edged higher on Wednesday morning in the domestic futures market, while silver surged to a record high, driven by strong demand in the spot market and a weaker US dollar.

At 9:20 AM, MCX Gold August 5 contracts traded 0.06% higher at ₹1,00,390 per 10 grams, while MCX Silver September 5 contracts jumped 0.49% to ₹1,16,216 per kg, after touching an all-time high of ₹1,16,275 per kg.

Global Trade Developments Cap Gold’s Upside

Gold’s gains were capped following an announcement by US President Donald Trump on the finalisation of a US-Japan trade deal, which includes a 15% tariff on Japanese imports. The move signals further trade developments, with ongoing negotiations between the US and other key economies like India and China.

News agency PTI reported that a US trade delegation is set to visit India in August for another round of talks on a proposed bilateral trade agreement.

Meanwhile, US Treasury Secretary Scott Bessent revealed that US and Chinese officials would meet next week in Stockholm to discuss an extension to the August 12 deadline for negotiating their trade pact.

While successful trade deals could boost global risk appetite and potentially weigh on gold prices, ongoing weakness in the dollar index and declining US Treasury yields are expected to provide support to precious metals.

The dollar index hovered near a two-week low, and the 10-year US Treasury yields dropped to their lowest level since July 9.

Investor attention is now turning to the US Federal Reserve’s interest rate decision next week, which could provide further direction for gold and silver prices.

Key Support and Resistance Levels

• Gold (International):
  • Support: $3,422–$3,409
  • Resistance: $3,454–$3,472
• Silver (International):
  • Support: $39.20–$38.84
  • Resistance: $39.80–$40.10
• MCX Gold (INR):
  • Support: ₹99,720–₹99,200
  • Resistance: ₹1,00,700–₹1,01,000
• MCX Silver (INR):
  • Support: ₹1,14,850–₹1,14,000
  • Resistance: ₹1,16,650–₹1,18,000

Experts recommends buying silver in the ₹1,15,200–₹1,14,400 range, with a stop-loss at ₹1,13,300, and targets between ₹1,16,650 and ₹1,18,000.

Senior Research Analyst at Reliance Securities, suggested that MCX Gold August contracts may dip to ₹1,00,000, with intraday resistance seen at ₹1,00,900.

Disclaimer:
The information provided in this blog is for educational and informational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any financial instruments. Stock market investments are subject to market risks. Past performance is not indicative of future results. Readers are advised to consult a qualified financial advisor before making any investment decisions. The author and publisher are not liable for any losses or damages arising from the use of this information.

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