Gold and silver prices traded higher on Wednesday with precious metals gaining up to almost 1 per cent in early trade supported by easing crude oil prices and bond yields.
MUMBAI — Gold and silver prices traded higher on Wednesday with precious metals gaining up to almost 1 per cent in early trade supported by easing crude oil prices and bond yields.
On the Multi Commodity Exchange (MCX), gold futures (October) opened at INR 1,63,202 per 10 grams, up INR 320 from its previous close of INR 1,62,882.
At around 12:15 am, the yellow metal was trading at INR 1,62,395 per 10 grams, down INR 487 or 0.3 per cent. So far in the trading session, it jumped as much as 0.19 per cent or INR 320 to hit an intraday high of INR 1,63,202, while recording an intraday low of INR 1,62,286, a decrease of 0.36 per cent or INR 596.
Meanwhile, silver futures (September) opened at INR 2,45,583 per kg, up INR 1,456 from its previous close of Rs 2,44,127.
At the last count, the white metal was seen at INR 2,44,200 per kg, down INR 73 or 0.03 per cent. It has touched an intraday high of INR 2,46,180, an increase of 0.84 per cent or INR 2,053.
In international markets, COMEX gold was up 0.11 per cent at around $4,699 an ounce, while COMEX silver gained 0.74 per cent to trade near $69 an ounce.
According to market experts, easing crude oil prices and lower bond yields have supported gold and silver prices, while a weaker dollar has also provided a positive backdrop for the precious metals.
Moreover, reports that Oman and Iran are discussing reopening the Strait of Hormuz and removing mines have eased concerns over disruptions to oil supplies.
According to commodity experts, gold has resumed trading on a steady note after rising to a more than three-month high in recent sessions with traders now focusing on US inflation data for cues on the Federal Reserve's interest rate path.
MCX Gold has been trading in the INR 1,62,500-1,63,400 range in recent sessions with a breakout above INR 1,63,400 potentially opening the way towards INR 1,63,900, according to them.
On the downside, major support for gold is seen around INR 1,61,130, based on the 20-EMA on the four-hour chart, they said.
For MCX silver, resistance is seen at INR 2,48,800, with a breakout potentially accelerating the bullish momentum towards INR 2,55,000. The analysts expect the white metal to remain sideways to bullish during Wednesday's session.
Moreover, Brent crude slipped to around $88 a barrel, extending losses for a third consecutive session after reports of discussions between Iran and Oman on establishing a temporary joint maritime corridor in the Strait of Hormuz.