Gold, silver trade nearly 2 pc lower amid global interest rates concerns
New Delhi, June 24
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 Rs 1,45,000 per 10 grams, down Rs 1,528 or 1.04 per cent from the previous close of Rs 1,46,529.
At around 12:10 pm, the yellow metal was trading at Rs 1,45,216, lower by Rs 1,313 or 0.9 per cent. During the session so far, it touched an intraday low of Rs 1,44,114, a decrease of 1.64 per cent or Rs 2,415 and a high of Rs 1,45,480.
Meanwhile, silver futures (July) also remained under pressure.
The white metal opened at Rs 2,22,579 per kg on the exchange, down Rs 3,255 or 1.44 per cent from the previous close of Rs 2,25,834. At the last count, it declined as much as 1.84 per cent or Rs 4,176 to Rs 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 Rs 1.45 lakh-Rs 1.46 lakh range. A sustained move above this zone could trigger a recovery towards Rs 1.47 lakh and eventually Rs 1.48 lakh. On the downside, a breach of the Rs 1.43 lakh level may intensify selling pressure and drag prices towards the Rs 1.40 lakh-Rs 1.39 lakh zone.
For silver, the experts said immediate resistance is placed in the Rs 2.25 lakh-Rs 2.26 lakh range, while a break below the Rs 2.20 lakh level could push prices towards Rs 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.
— IANS
Reader Comments
As someone who bought gold at Rs 1.47 lakh last month, this is painful to watch 😢. But the long-term trend is always up for gold in India. My grandmother always said gold is the only jewellery that doesn't lose value over 10 years. Just have to hold tight through these fluctuations.
The dollar index rising to 101.265 is the real culprit here. When dollar strengthens, gold always takes a hit. Our RBI needs to watch this carefully because it affects our import costs too. Still, for small investors like me, this dip is a good opportunity to add some digital gold via apps.
Interesting times for precious metals. The Rs 1.43 lakh level is crucial, if gold breaks that support we could see a significant sell-off. But silver at Rs 2.21 lakh is tempting – industrial demand might pick up if global manufacturing recovers. Personally, I'd rather invest in silver ETFs than physical silver due to storage issues.
My mother always says gold is a woman's best friend, but this dip is testing our patience! 😅 We had planned to buy for my cousin's wedding next month. The experts saying Rs 1.45-1.46 lakh is resistance makes me think we should wait. But with wedding season approaching, families will buy anyway, which might support prices.
I'm a small trader in Delhi's bullion market. This kind of volatility is normal when global interest rate expectations change. The real question is whether the Fed will cut rates later this year. If they do, gold could rally again. For now
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