Gold, silver extend losses as US inflation concerns weigh on rate-cut hopes

Gold futures on MCX fell to around ₹1.41 lakh per 10 gm and silver to ₹1.86 lakh per kg as persistent US inflation concerns fuelled expectations of tighter monetary policy

Persistent inflation concerns in the US have strengthened expectations that monetary policy could remain tight, triggering fresh selling in gold and silver and pushing prices lower on Friday, October 30.

 

In the global market, gold futures on Comex were trading near $4,000 per ounce, while silver was trading near $51.30 per ounce. In the domestic market, gold futures on the Multi Commodity Exchange (MCX) were trading near ₹1,41,800 per 10 gram at the time of writing, while silver futures were trading near ₹1,86,750 per kg.

Gold prices fall

Gold futures opened lower. On the MCX, the benchmark December gold contract opened ₹371 lower at ₹1,42,225 per 10 gram. The previous close was ₹1,42,596.

 

 

At the time of writing, the contract was trading ₹804 lower at ₹1,41,792.

 

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

Silver also slides

Silver futures also opened lower. On the MCX, the benchmark December silver contract opened ₹1,676 lower at ₹1,87,777 per kg. The previous close was ₹1,89,453.

 

At the time of writing, the contract was trading ₹2,708 lower at ₹1,86,745.

 

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

Gold, silver weak in global market

Gold and silver were trading lower in the international market.

 

On Comex, gold opened at $4,033.60 per ounce. The previous closing price was $4,031.40. At the time of writing, it was trading $29.10 lower at $4,002.30 per ounce.

 

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

 

Comex silver futures opened at $52.25 per ounce. The previous closing price was $52.38. At the time of writing, silver was trading $1.06 lower at $51.32 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 fresh selling. Open interest rose 0.08 per cent to 15,603 contracts, while prices fell by ₹1,109.

 

The technical data placed initial support at ₹1,41,990, followed by ₹1,41,390. However, the current price of ₹1,41,792 has already slipped below the first support.

 

Resistance is seen at ₹1,43,560. If prices sustain above this level, gold could rise towards ₹1,44,520.

 

Silver was also witnessing fresh selling pressure. Open interest increased 7.62 per cent to 17,862 contracts, while prices fell by ₹4,872.

 

The technical data placed initial support at ₹1,87,630, followed by ₹1,85,800. The current price of ₹1,86,745 has already fallen below the first support.

 

Resistance is seen at ₹1,92,600. If silver sustains above this level, prices could rise towards ₹1,95,740.

Why have gold and silver become cheaper?

Vikram Subburaj, chief executive officer of Giottus.com, said gold and silver remained under pressure on Friday as persistent inflation concerns in the US strengthened expectations that monetary policy could remain tight.

 

Spot gold fell to $4,006.06 per ounce in early Asian trade, while US gold futures were at $4,018.50 per ounce. In the previous trading session, spot silver had fallen 3.5 per cent to $52.08 per ounce.

 

The weakness in precious metals indicated diminishing expectations of interest-rate cuts in the near term, Subburaj said.

 

Kedia said fresh selling was also contributing to the weakness in both metals.

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.