Gold, silver prices rebound as crude oil prices fall on supply boost

Gold and silver futures opened higher on MCX and Comex as easing crude oil prices and shifting US rate expectations provided some support to bullion

A sharp decline in crude oil prices provided some support to gold and silver. Oil prices fell amid an improvement in energy supplies from the West Asia and the release of another large tranche from US emergency oil reserves.

 

Gold and silver futures opened higher on Wednesday, September 30.

 

In the global market, gold futures on Comex were trading near $4,215 per ounce, while silver was trading near $61.50 per ounce. In the domestic market, gold futures on the Multi Commodity Exchange (MCX) were trading near ₹1,49,800 per 10 gram at the time of writing, while silver futures were trading near ₹2,26,450 per kg.

Gold rises

Gold futures opened higher. On the MCX, the benchmark December gold contract opened ₹1,087 higher at ₹1,49,910 per 10 gram. The previous close was ₹1,48,823.

 

At the time of writing, the contract was trading ₹1,001 higher at ₹1,49,824.

 

Gold futures had touched a high of ₹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 ₹1,037 higher at ₹ 2,26,487 per kg. The previous close was ₹2,25,450.

 

At the time of writing, the contract was trading ₹993 higher at ₹2,26,443.

 

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 $4,216.20 per ounce. The previous closing price was $4,179.70. At the time of writing, it was trading $32.60 higher at $4,212.30 per ounce.

 

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

 

Comex silver futures opened at $61.83 per ounce. The previous closing price was $61.15. At the time of writing, silver was trading $0.32 higher at $61.47 per ounce.

 

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

Why has pressure on gold and silver eased?

Vikram Subburaj, chief executive officer of Giottus.com, said recent comments from the Federal Reserve had provided some relief to gold and silver.

 

New York Fed President John Williams said there was no immediate urgency for another interest-rate increase. Following his comments, market expectations of an October rate increase fell to around 50 per cent from nearly 70 per cent earlier.

 

Crude oil prices have also declined, helping gold and silver recover on Wednesday, Subburaj said.

 

However, volatility is likely to persist for Indian investors. Movements in the rupee will also remain important, as a weaker rupee could provide some support to domestic bullion prices, he said.

Levels to watch

According to Ajay Kedia, director, Kedia Advisory, gold currently has support at ₹1,47,905. A sustained fall below this level could take prices towards ₹1,46,990.

 

On the upside, resistance is seen at ₹1,49,980. If gold sustains above this level, prices could rise towards ₹1,51,140.

 

Silver currently has support at ₹2,24,060. A sustained fall below this level could take prices towards ₹2,22,665.

 

On the upside, resistance is seen at ₹2,27,290. A decisive move above this level could take silver towards ₹2,29,125.

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.