Gold, silver rebound on buying at lower levels despite rate concerns

Gold and silver prices remain under pressure amid concerns over higher interest rates. However, buying at lower levels helped both metals open higher on Friday, September 25.

 

In the global market, gold futures on Comex were trading near $4,310 per ounce, while silver was trading near $64.35 per ounce. In the domestic market, gold futures on the Multi Commodity Exchange (MCX) were trading near ₹1,50,700 per 10 gram at the time of writing, while silver futures were trading near ₹2,33,850 per kg.

Gold gains

Gold futures opened higher. On the MCX, the benchmark October gold contract opened ₹300 higher at ₹1,51,010 per 10 gram. The previous close was ₹1,50,710.

 

At the time of writing, the contract was trading ₹425 higher at ₹1,51,135.

 

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

Silver also rises

Silver futures also opened higher. On the MCX, the benchmark December silver contract opened ₹254 higher at ₹2,33,736 per kg. The previous close was ₹2,33,482.

 

At the time of writing, the contract was trading ₹403 higher at ₹2,33,883.

 

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

Gold, silver firm in global market

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

 

On Comex, gold opened at $4,309.50 per ounce. The previous closing price was $4,298. At the time of writing, it was trading $20.10 higher at $4,318.10 per ounce.

 

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

 

Comex silver futures opened at $64.26 per ounce. The previous closing price was $64. At the time of writing, silver was trading $0.36 higher at $64.36 per ounce.

 

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

Why are gold and silver still under pressure?

Vikram Subburaj, chief executive officer of Giottus.com, said pressure on precious metals was mainly due to increased concerns over the direction of US interest rates.

 

The US Federal Reserve raised its policy rate this month to 3.75-4.00 per cent. Markets are now assessing the possibility of further rate increases.

 

A stronger dollar and elevated US bond yields are also putting pressure on gold. Both factors reduce the attractiveness of non-interest-bearing assets such as gold.

 

October gold had recently risen above ₹1.54 lakh per 10 gram but has now declined to around ₹1.51 lakh. Similarly, December silver has fallen to around ₹2.34 lakh per kg from above ₹2.40 lakh.

Levels to watch

According to Ajay Kedia, director, Kedia Advisory, gold currently has support at ₹1,50,110. A break below this level could take prices towards ₹1,49,510.

 

On the upside, resistance is seen at ₹1,51,330. If gold sustains above this level, it could rise to ₹1,51,950.

 

Silver has support at ₹2,31,320. A break below this level could take prices towards ₹ 2,29,160.

 

On the upside, resistance is seen at ₹2,35,615. If silver sustains above this level, it could recover to ₹2,37,750.

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.