Gold, silver decline up to 2 pc amid profit-booking
Mumbai, May 14
Gold and silver prices traded lower on Thursday, with the precious metals declining up to nearly 2 per cent amid profit booking after the government raised import duty to 15 per cent.
On the Multi Commodity Exchange (MCX), gold futures (June 5) fell 0.71 per cent, or Rs 1,159, to an intraday low of Rs 1,61,027 as of 10:30 a.m.
Similarly, silver futures (July 3) declined 1.92 per cent, or Rs 5,788, to hit an intraday low of Rs 2,94,450.
According to commodity market experts, MCX gold continued to trade near the Rs 1,61,500-Rs 1,62,000 range after witnessing a sharp breakout in the previous session.
Analysts said immediate resistance for gold is placed around Rs 1,62,000-Rs 1,63,000, and a sustained move above these levels could push prices towards Rs 1,64,000-Rs 1,65,000. On the downside, support is seen in the Rs 1,58,000-Rs 1,57,000 zone.
They added that the near-term outlook for gold remains cautiously positive, supported by safe-haven demand and ongoing geopolitical uncertainties.
Meanwhile, MCX silver opened weak but continued to trade within the Rs 2,94,000-Rs 2,96,000 support zone after a strong rally in recent sessions.
Analysts said resistance for silver is placed near Rs 3 lakh-Rs 3.02 lakh, while immediate support is seen around Rs 2.92 lakh-Rs 2.90 lakh. Despite heightened volatility, the near-term trend for silver remains bullish due to continued safe-haven buying.
One of the reasons behind the sharper decline in silver compared to gold is believed to be profit-booking after silver prices crossed the Rs 3 lakh mark during Wednesday's trading session.
In international markets, gold and silver traded mixed. On COMEX, gold edged up 0.03 per cent to $4,708 per ounce, while silver declined 1.87 per cent to $87.68 per ounce.
— IANS
Reader Comments
As someone working in the diamond trade, I watch silver closely too. This Rs 3 lakh mark was a psychological barrier, so profit booking was expected. But with global tensions still high, I doubt this dip lasts long. Safe haven buying will push it back up within weeks.
Honestly, I'm a bit concerned about this volatility. My father invested heavily in gold last month thinking it would only go up. Now with the duty hike to 15%, we're seeing a correction. Hope he doesn't panic sell—better to hold for the long term as analysts suggest.
Rising import duty is good for our economy but bad for weddings! 😂 My sister is getting married next month and we were planning to buy 50 grams. Now prices are still high even after this dip. Might just stick to smaller jewelry for now. Gold is never cheap in India!
The global uncertainty is real. Even with this profit booking, the underlying demand for gold remains strong. I'd say anyone looking to buy should wait for the support level around Rs 1.57 lakh. That would be a good entry point for the next leg up.
I don't understand why people are so obsessed with gold and silver. Prices are manipulated by global markets and government policies. If you're an ordinary saver like me, putting money in mutual funds or fixed deposits is safer. Gold is just for show, not true investment. 🙄
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