Gold and silver prices traded almost 2 per cent lower on Wednesday amid concerns that higher global interest rates could weigh on demand for precious metals
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NEW DELHI — Gold and silver prices traded almost 2 per cent lower on Wednesday amid concerns that higher global interest rates could weigh on demand for precious metals.
On the Multi Commodity Exchange (MCX), gold futures (August) opened at INR 1,45,000 per 10 grams, down INR 1,528 or 1.04 per cent from the previous close of INR1,46,529.
At around 12:10 pm, the yellow metal was trading at INR 1,45,216, lower by INR 1,313 or 0.9 per cent. During the session so far, it touched an intraday low of INR 1,44,114, a decrease of 1.64 per cent or INR 2,415 and a high of INR 1,45,480.
Meanwhile, silver futures (July) also remained under pressure.
The white metal opened at INR 2,22,579 per kg on the exchange, down INR 3,255 or 1.44 per cent from the previous close of INR 2,25,834. At the last count, it declined as much as 1.84 per cent or INR 4,176 to INR 2,21,658.
Weakness in precious metals was also visible in international markets. Spot gold was trading at $4,092.39 per ounce, down 0.4 per cent, while silver was at $61.82, a decrease of 0.33 per cent.
According to commodity market experts, immediate resistance for gold is seen in the INR 1.45 lakh-INR 1.46 lakh range. A sustained move above this zone could trigger a recovery towards INR 1.47 lakh and eventually INR
For silver, the experts said immediate resistance is placed in the INR 2.25 lakh-INR 2.26 lakh range, while a break below the INR 2.20 lakh level could push prices towards INR 2.15 lakh and lower.
Overall, they maintain a cautiously negative near-term outlook on both precious metals, citing persistent selling pressure and the need for prices to reclaim key resistance levels to improve momentum.
Moreover, the dollar index -- which measures the greenback's performance against a basket of six major currencies -- rose to 101.265.
The dollar index tracks the US currency against the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.