Gold, silver extend gains as softer oil prices ease inflation concerns

Gold and silver prices extended gains on Monday, November 9, building on last week’s rise as lower crude oil prices eased inflation concerns.

 

Gold crossed $4,100 per ounce in the international market. However, expectations that the US Federal Reserve could maintain a tight monetary policy stance capped some of the gains.

 

At the time of writing, gold futures on Comex were trading near $4,130 per ounce, while silver was trading near $53 per ounce. In the domestic market, gold futures on the Multi Commodity Exchange (MCX) were trading near Rs 1,43,950 per 10 gram, while silver futures were trading near Rs 1,88,600 per kg.

Gold prices rise

Gold futures opened higher. On the MCX, the benchmark December gold contract opened Rs 1,010 higher at Rs 1,43,562 per 10 gram. The previous close was Rs 1,42,552.

 

At the time of writing, the contract was trading Rs 1,415 higher at Rs 1,43,967.

 

Gold futures had touched a high of Rs 1,80,779 per 10 gram earlier this year.

Silver also gains

Silver futures also opened higher. On the MCX, the benchmark December silver contract opened Rs 1,500 higher at Rs 1,86,600 per kg. The previous close was Rs 1,85,100.

 

At the time of writing, the contract was trading Rs 3,499 higher at Rs 1,88,599.

 

Silver futures had touched a high of Rs 4,20,048 per kg earlier this year.

Gold, silver rise in global market

Gold and silver were trading higher in the international market.

 

On Comex, gold opened at $4,074.30 per ounce. The previous closing price was $4,074.90. At the time of writing, it was trading $53.60 higher at $4,128.50 per ounce.

 

Gold prices had touched a high of $5,586.20 per ounce earlier this year.

 

Comex silver futures opened at $51.61 per ounce. The previous closing price was $51.94. At the time of writing, it was trading $1.16 higher at $53.10 per ounce.

 

Silver prices had touched a high of $121.79 per ounce earlier this year.

Levels to watch

According to Ajay Kedia, director, Kedia Advisory, gold was technically witnessing short covering. Open interest declined 0.41 per cent to 15,706 contracts, while prices rose by Rs 385 during the period under consideration.

 

The technical data placed support at Rs 1,42,240, followed by Rs 1,41,930. Resistance was seen at Rs 1,42,780, followed by Rs 1,43,010.

 

However, the current gold price quoted in the report, at Rs 1,43,967, is already above both of these resistance levels.

 

Silver was also witnessing short covering from a technical perspective. Open interest declined 0.36 per cent to 16,765 contracts, while prices rose by Rs 313.

 

The technical data placed support at Rs 1,84,820, followed by Rs 1,84,540. Resistance was seen at Rs 1,85,360, followed by Rs 1,85,620.

 

The current silver price quoted in the report, at Rs 1,88,599, is already above both stated resistance levels.

MCX, Comex prices

 

Note: MCX gold futures prices are in rupees per 10 gram, while MCX silver futures prices are in rupees per kg. Comex gold and silver futures prices are in dollars per ounce. Last traded prices are as of the time of writing.