Weaker crude prices continue to support gold sentiment. With limited major US economic data this week, except for manufacturing data in the middle of the week, gold could remain range-bound but volatile, says analyst.
Spot gold surged marginally, hovering just above 4,350 per ounce, up 0.14 percent in early trading on September 22, and US gold futures traded with a 0.03 percent increase to $4,385.40 per ounce (02:03 GMT) amid escalating US-Iran tensions, following profit booking and elevated dollar.
The domestic spot gold closed the Friday session at Rs 1,52,620 per 10 grams, while silver held its price at Rs 2,35,054 per kilogram. MCX gold futures for the October delivery declined 0.85 percent to Rs 1,53,069 per 10 grams, and silver fell 0.89 percent to Rs 2,39,455 per kilogram from its previous close.
Jateen Trivedi, VP Research Analyst at LKP Securities, said, “Gold prices remained under mild profit booking as the Dollar Index moved above 100, keeping some pressure on bullion. However, weaker crude prices continue to support gold sentiment. With limited major US economic data this week, except for manufacturing data in the middle of the week, gold could remain range-bound but volatile.”
The analyst estimates that the $4,250 level remains a strong technical support, with gold expected to trade in the $4,250–$4,450 range on COMEX and Rs 1,51,000–Rs 1,56,000 on MCX.
Article source: moneycontrol.com
