Precious metal prices: Gold, silver trade mixed after slipping from 1-month high

Gold prices on Tuesday (January 14, 2025) traded steady with a positive bias after slipping from a 1-month high amid strong dollar index and US bond yields. At around 12 pm, gold February futures traded with marginal gains of 0.06 per cent or Rs 45 at Rs 78,211 per 10 gm.

On the other hand, silver March futures traded with a cut of Rs 350 or 0.39 per cent at Rs 90,163 per kg.

In the previous session, gold and silver settled on a weaker note in the international markets. Gold February futures contract were settled at $2,678.60 per troy ounce down by 1.34 per cent and silver March futures contract settled at $30.309 per troy ounce, down by 3.21 per cent.

Conversely, in the domestic markets too, gold February futures contract settled at Rs78,166 per 10 grams with a loss of 0.33 per centand silver March futures contract settled at Rs 90,513 per kilogram with a loss of 2.15 per cent.

Gold and silver prices slipped from one month high in the international markets amid late reactions to the strong U.S. job data and strength in the dollar index. The dollar index and U.S. bond yields are showing strong gains amid uncertainty in the global financial markets and limited gains in precious metals. 

Higher inflation anticipated in the US

Gold and silver prices were also dragged down amid higher inflation expectations in the United States. The U.S. CPI data is expected to came up at 2.9 per cent on yearly basis against previous reading of 2.7 per cent and could also limit gains of precious metals. However, weakness in the global equity markets could support safe-haven demand for precious metals.

Gold and silver support and resistance levels and trading strategy

Gold and silver prices are expected to remain volatile this week amid volatility in the dollar index and ahead of the U.S. inflation data.

Manoj Jain, Commodity Expert- India Nivesh said, "gold has support at $2662-2645, while resistance at $2694-2722 per troy ounce and silver has support at $30.00-29.74, while resistance is at $30.60-30.88 per troy ounce in today’s session. On the MCX, gold is having support at 77950-77660 and resistance at 78440-78720 while silver is having support at 89800-89150 and resistance at 91200-92000."

We suggest wait for some stability in the markets for initiating fresh long positions in precious metals, added Jain.