Gold, silver gain globally on easing inflation fears, trade lower on MCX

Gold crossed $4,200 per ounce in the global market as inflation concerns eased, while silver also traded higher. In the domestic market, however, gold slipped after opening firm, while silver also traded lower.

 

US President Donald Trump said Russia had agreed to supply hundreds of thousands of tonnes of diesel. This raised expectations that global fuel shortages could ease and restrictions on Russian exports could be relaxed, helping reduce inflation concerns.

 

On Monday, October 12, gold futures on Comex were trading near $4,230 per ounce, while silver was trading near $61.30 per ounce.

 

In the domestic market, gold futures on the Multi Commodity Exchange (MCX) were trading near ₹1,50,850 per 10 gram at the time of writing, while silver futures were trading near ₹2,25,300 per kg.

Gold falls after firm start

Gold futures opened higher. On the MCX, the benchmark December gold contract opened ₹97 higher at ₹1,51,596 per 10 gram. The previous close was ₹1,51,499.

 

However, at the time of writing, the contract was trading ₹654 lower at ₹1,50,845.

 

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

Silver also declines

Silver futures opened lower. On the MCX, the benchmark December silver contract opened ₹261 lower at ₹2,25,494 per kg. The previous close was ₹2,25,755.

 

At the time of writing, the contract was trading ₹451 lower at ₹2,25,304.

 

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

Gold, silver rise in global market

Gold and silver futures were trading higher in the international market.

 

On Comex, gold opened at $4,220.80 per ounce. The previous closing price was $4,216.30. At the time of writing, it was trading $12.50 higher at $4,228.80 per ounce.

 

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

 

Comex silver futures opened at $61.29 per ounce. The previous closing price was $61.04. At the time of writing, silver was trading $0.24 higher at $61.28 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 fell 2.71 per cent to 16,126 contracts as prices rose.

 

Gold currently has support at ₹1,50,870, followed by the next support at ₹1,50,240. Resistance is seen at ₹1,51,915 and ₹1,52,330.

 

If gold sustains above ₹1,51,915, the recovery could extend towards ₹1,52,330. A break below ₹1,50,870, however, could take prices towards the next support at ₹1,50,240.

 

Kedia said silver was also witnessing short covering from a technical perspective. Open interest fell 8.92 per cent to 16,859 contracts as prices rose.

 

Silver currently has support at ₹2,24,070, followed by ₹2,22,385. Resistance is seen at ₹2,27,010 and ₹2,28,265.

 

If silver sustains above ₹2,27,010, the recovery could extend towards ₹2,28,265. A break below ₹2,24,070, however, could increase weakness and take prices towards ₹2,22,385.

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.