Gold and silver prices: Rates of gold and silver climbed in the domestic futures market on Tuesday morning, supported by healthy spot market demand and positive global cues. MCX gold October series were 0.42% up at ₹1,53,461 per 10 grams, while MCX silver December contracts were 0.67% up at ₹2,40,615 per kg around 9:10 AM.
Traders said healthy spot market demand ahead of the festive season is supporting futures prices.
International gold prices also saw decent gains. US gold futures for December delivery rose by 0.40% to $4,485.84 per troy ounce amid a decline in the US dollar and bond yields.
The dollar index eased by 0.50% to touch 98.72, while the 10-year bond yields cooled to 4.77% from 4.79% in the previous session.
Gold and silver prices are witnessing some buying ahead of the US Federal Reserve’s policy meeting on 15-16 September. Markets see a 60% chance of an interest rate hike by the Fed next week, according to the CME FedWatch Tool.
Investors await the U.S. producer price index data, scheduled for Thursday, and the consumer price index data, due on Friday, for further cues on the Fed’s next policy move.
The US-Iran conflict remains a key trigger for gold as well as equity markets globally.
As per reports, Iran threatened the United States with “economic warfare” on Tuesday. It also claimed it had fired an advanced missile at US warships, raising the risks of further escalation of tensions between the two countries.
Besides, seventy-three people were injured in Saudi Arabia after Yemen’s Iran-backed Houthis attacked the cities of Abha, Khamis Mushait, Jazan and Najran.
“International Gold has shown some resilience as a sharp rally in the Japanese yen weakened the dollar and provided support to bullion. However, the upside remains capped by elevated oil prices and renewed inflation concerns, while markets continue to price around a 60% probability of a Fed rate hike at the September meeting,” Ravi Singh, Chief Research Officer at Master Capital Services, noted.
“The key trigger now is the upcoming US inflation data, with hotter-than-expected readings likely to strengthen rate-hike expectations and add pressure on gold. At the same time, continued central-bank buying, particularly from China, could provide a downside cushion. Overall, the macro setup remains mixed, but near-term risks continue to favour a cautious bearish stance,” said Singh.
Gold and silver prices: Key levels to watch
According to Singh, the rejection from ₹1,57,000 keeps the near-term structure weak, while ₹1,49,600 remains the crucial support zone.
“A decisive break below this level could extend the decline towards ₹1,48,000, keeping the sell-on-rise strategy preferred unless the broader price structure improves,” said Singh.
Manoj Kumar Jain of Prithvifinmart Commodity Research said MCX gold has support at ₹1,51,750 and ₹1,50,500, and resistance at ₹1,53,850 and ₹1,54,700, while silver has support at ₹2,36,600 and ₹2,35,000, and resistance at ₹2,41,000 and ₹2,44,000.
“We suggest long-term investors must accumulate gold and silver in this market fall in a staggered way while traders can buy gold around ₹1,52,000 and ₹1,50,500, with a stop loss below ₹1,48,800 for the target of ₹1,54,400 and ₹1,56,500 and buying silver around ₹2,36,600 and ₹2,35,000 with a stop loss below ₹2,31,000 for the target of ₹2,41,000 and ₹2,44,000,” said Jain.
According to Jigar Trivedi, Senior Research Analyst at IndusInd Securities, MCX gold October futures may decline to ₹1,52,400 per 10 grams.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
