Gold and silver prices opened sharply lower on Wednesday over concerns of US Federal Reserve rate-hike fears
Share
NEW DELHI — Gold and silver prices opened sharply lower on Wednesday over concerns of US Federal Reserve rate-hike fears.
On the Multi Commodity Exchange (MCX), gold futures (August) dipped 1.51 per cent to INR 1,50,140 per 10 grams at 12.15 pm on an intraday basis.
On the other hand, silver futures (July) lost almost 1 per cent to INR 2,36,239 per kg.
The price of 10 grams of 24-carat gold was at INR 1,48,429 on Wednesday, down from INR 1,52,519 of the previous day's market opening, according to data published by the India Bullion and Jewellers Association (IBJA).
Internationally too, spot gold fell 1.8 per cent to $4,187.59 an ounce, touching an 11‑week low level, while US gold futures for August delivery dropped to $4,213.40.
A firmer dollar and rising crude oil on renewed Middle East hostilities stoked inflation concerns and cemented expectations that the Federal Reserve could keep rates higher for longer, analysts said.
As the dollar rose, greenback-priced bullion became more expensive for holders of other currencies. The CME FedWatch tool showed traders pricing in over 70 per cent odds of a US Fed rate hike by December.
For MCX gold, immediate resistance is placed at INR 1,52,000, and a sustained move above this zone is required to strengthen momentum and extend the recovery toward INR 1,54,000- INR 1,55,000, analysts said.
"Overall, the near-term bias remains cautious to negative, with geopolitical uncertainties and broader market volatility continuing to influence price direction," a market participant said.
MCX silver is currently holding above the key INR 2,34,000 to INR 2,32,000 support zone, reflecting cautious price action amid ongoing volatility. On the upside, immediate resistance is placed at Rs 2,38,000 to Rs 2,40,000, they said.
On the downside, a decisive break below the INR 2,32,000 support level could intensify selling pressure, market observers added.