Gold, silver bounce back after sharp sell-off, but yellow metal near 3-month low
New Delhi, Oct 26
Gold and silver prices recovered on Monday on low-level buying following a sharp sell-off, though the yellow metal remained near a three-month low.
On the Multi Commodity Exchange (MCX), gold futures (December) opened Rs 277 higher at Rs 1,42,301 per 10 grams against the previous close of Rs 1,42,024.
The yellow metal surged as much as 0.6 per cent, or Rs 864, to Rs 1,42,888, hitting an intraday high at 11:50 am. It was trading at Rs 1,42,500, up Rs 476 or 0.34 per cent.
On the other hand, silver futures (December) opened Rs 538 higher at Rs 1,96,257 per kg against the previous close of Rs 1,95,719.
The white metal recorded an intraday high of Rs 1,97,186, up 0.74 per cent or Rs 1,467. At last count, it was trading at Rs 1,95,572, down Rs 147 or 0.08 per cent.
According to market experts, "MCX gold is holding between support and resistance bands after last week's slide. The December contract fell nearly 4 per cent last week to close near Rs 1.42 lakh."
"MCX gold is gaining about half as much as COMEX gold and trails MCX silver as silver's oversold bounce is sharper. Immediate resistance is seen at Rs 1,43,000-1,43,700 zone, followed by Rs 1,45,300-1,46,000, while immediate support is at Rs 1,40,000-1,41,000 zone. RSI near 33 is close to oversold and MACD's negative histogram is widening," they added.
Bias remains cautious, with a reclaim above Rs 1,43,000-1,43,700 needed to stabilise.
For MCX silver, immediate resistance lies in the Rs 2,00,000-2,02,000 zone, followed by Rs 2,06,000-2,08,000, according to them.
"Support is placed at Rs 1,92,000-1,94,000, with next support at Rs 1,83,000-1,85,000. Friday's long lower shadow near Rs 1,92,000 suggests an attempt to establish a base. RSI near 25 remains deep oversold, though MACD continues below its signal line, indicating bearish momentum remains in place," the experts said.
In the global market, COMEX gold futures opened at $4,012.20 per ounce against the previous close of $4,007.90. It had touched $5,586.20 earlier this year.
Meanwhile, COMEX silver opened at $54.29 against the previous close of $53.94. It had hit the $121.79 mark earlier this year.
— IANS
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