Gold, silver fall on concerns over rising crude oil prices, interest rates

Rising crude oil prices have revived concerns over inflation and further increases in interest rates, while US Treasury yields remained near multi-decade highs amid fiscal risks. This kept pressure on gold and silver prices on Wednesday, October 7.

 

In the global market, gold futures on Comex were trading near $4,165 per ounce, while silver was trading near $60 per ounce. In the domestic market, gold futures on the Multi Commodity Exchange (MCX) were trading near Rs 1,49,500 per 10 gram at the time of writing, while silver futures were trading near Rs 2,25,900 per kg.

 

Gold prices fall

 

Gold futures opened lower. On the MCX, the benchmark December gold contract opened Rs 524 lower at Rs 1,49,596 per 10 gram. The previous close was Rs 1,50,120.

  

At the time of writing, the contract was trading Rs 615 lower at Rs 1,49,505.

 

Gold futures had touched a high of Rs 1,80,779 per 10 gram earlier this year.

 

Silver also declines

 

Silver futures also opened on a weak note. On the MCX, the benchmark December silver contract opened Rs 1,234 lower at Rs 2,26,008 per kg. The previous close was Rs 2,27,242.

 

At the time of writing, the contract was trading Rs 1,341 lower at Rs 2,25,901.

 

Silver futures had touched a high of Rs 4,20,048 per kg earlier this year.

 

Gold, silver slip in global market

 

Gold and silver futures were trading lower in the international market.

 

On Comex, gold opened at $4,195 per ounce. The previous closing price was $4,187.10. At the time of writing, it was trading $21.50 lower at $4,165.60 per ounce.

 

Gold prices had touched a high of $5,586.20 per ounce earlier this year.

 

Comex silver futures opened at $61.78 per ounce. The previous closing price was $61.58. At the time of writing, silver was trading $1.58 lower at $60 per ounce.

 

Silver prices had touched a high of $121.79 per ounce earlier this year.

 

Levels to watch

 

According to Ajay Kedia, director, Kedia Advisory, gold was technically witnessing short covering. Open interest fell 0.88 per cent to 16,179, while prices rose by Rs 804.

 

Gold has support at Rs 1,49,025. A break below this level could take prices towards Rs 1,47,925.

 

On the upside, resistance is seen at Rs 1,50,900. A sustained move above this level could take gold towards Rs 1,51,675.

 

Kedia said silver was witnessing fresh buying from a technical perspective. Open interest rose 0.41 per cent to 16,517, while prices increased by Rs 1,155.

 

Silver has support at Rs 2,25,055. A break below this level could take prices towards Rs 2,22,865.

 

On the upside, resistance is seen at Rs 2,28,755. A sustained move above this level could take silver towards Rs 2,30,265.

 

MCX, Comex prices