Gold, silver trade lower on Fed rate hike concerns
New Delhi, June 10
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 Rs 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 Rs 2,36,239 per kg.
The price of 10 grams of 24-carat gold was at Rs 1,48,429 on Wednesday, down from Rs 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 Rs 1,52,000, and a sustained move above this zone is required to strengthen momentum and extend the recovery toward Rs 1,54,000-Rs 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 Rs 2,34,000 to Rs 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 Rs 2,32,000 support level could intensify selling pressure, market observers added.
— IANS
Reader Comments
Finally a good time for those who want to invest! Falling gold prices are a blessing for young couples planning wedding purchases. My cousin is getting married in October and she's thrilled! 😄
Interesting how Indian markets still follow US Federal Reserve decisions so closely. The correlation between Fed rate hike expectations and gold prices here is undeniable. Looking at MCX levels, that ₹1,52,000 resistance zone will be crucial to watch.
Bhai, main toh silver mein diversify kar raha hoon. Silver ₹2,32,000 ke support pe hai - agar yeh tut gaya toh bada dip aayega. Lekin gold aur silver dono mein long term mein confidence hai. Emergency fund ke liye accha hai. 📉✨
The article makes a good point about geopolitical tensions and crude oil prices. But I wonder if India's own economic factors - like our current account deficit or the rupee's strength - are being overlooked. We shouldn't just react to US news blindly.
Gold 1.5% down in one day! Mera portfolio thoda hil gaya. But honestly, this is the time to accumulate if you have patience. Indian weddings aur festivals will always support demand. Buying the dip! 🏆
A We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.