Gold, silver fall as higher crude oil prices revive rate-hike concerns

Gold and silver prices traded lower on Wednesday, October 21, as elevated crude oil prices revived inflation concerns and raised the possibility of further increases in interest rates.

 

Rising tensions in West Asia and attacks on oil tankers have also increased concerns over disruption to global crude oil supplies.

 

In the global market, gold futures on Comex were trading near $4,140 per ounce, while silver was trading near $57.60 per ounce. In the domestic market, gold futures on the Multi Commodity Exchange (MCX) were trading near ₹1,46,100 per 10 gram at the time of writing, while silver futures were trading near ₹2,09,750 per kg.

 

Gold prices fall

Gold futures opened lower. On the MCX, the benchmark December gold contract opened ₹191 lower at ₹1,46,328 per 10 gram. The previous close was ₹1,46,519.

 

At the time of writing, the contract was trading ₹389 lower at ₹1,46,130.

 

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

Silver also slips

Silver futures also opened lower. On the MCX, the benchmark December silver contract opened ₹1,085 lower at ₹2,10,400 per kg. The previous close was ₹2,11,485.

 

At the time of writing, the contract was trading ₹1,733 lower at ₹2,09,752.

 

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

Gold, silver weak in global market

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

 

On Comex, gold opened at $4,143.40 per ounce. The previous closing price was $4,142.60. At the time of writing, it was trading $3.20 lower at $4,139.40 per ounce.

 

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

 

Comex silver futures opened at $58.15 per ounce. The previous closing price was $58. At the time of writing, it was trading $0.43 lower at $57.57 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 pressure. Open interest rose 0.42 per cent to 16,829 contracts as prices declined by ₹747.

 

Gold has initial support at ₹1,45,750, followed by ₹1,44,980. Resistance is seen at ₹1,47,320. A move above this level could take prices towards ₹1,48,120.

 

Kedia said silver was technically witnessing short covering. Open interest fell 1.45 per cent to 19,522 contracts as prices rose by ₹1,657.

 

Silver has initial support at ₹2,08,570, followed by ₹2,05,650. Resistance is seen at ₹2,13,920. A move above this level could take prices towards ₹2,16,360.

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.