Gold, silver prices fall amid rise in global bond yields and dollar

Gold and silver remained under pressure amid a rise in global bond yields and the dollar. Both metals opened lower on Tuesday, September 29.

 

In the global market, gold futures on Comex were trading near $4,160 per ounce, while silver slipped to around $61 per ounce. In the domestic market, gold futures on the Multi Commodity Exchange (MCX) were trading near ₹1,48,800 per 10 gram at the time of writing, while silver futures fell to around ₹2,25,300 per kg.

Gold opens lower

Gold futures opened with losses. On the MCX, the benchmark December gold contract opened ₹131 lower at ₹1,48,766 per 10 gram. The previous close was ₹1,48,897.

 

 

At the time of writing, the contract was trading ₹79 lower at ₹1,48,818.

 

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

Silver also slips

Silver futures also opened on a weak note. On the MCX, the benchmark December silver contract opened ₹1,497 lower at ₹2,25,945 per kg. The previous close was ₹2,27,442.

 

At the time of writing, the contract was trading ₹2,121 lower at ₹2,25,321.

 

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 $4,150.10 per ounce. The previous closing price was $4,168.40. At the time of writing, it was trading $1.80 lower at $4,166.60 per ounce.

 

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

 

Comex silver futures opened at $61.03 per ounce. The previous closing price was $61.71. At the time of writing, silver was trading $0.75 lower at $60.97 per ounce.

 

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

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Why are gold and silver under pressure?

Vikram Subburaj, chief executive officer of Giottus.com, said the Indian bullion market was witnessing a sharp decline.

 

Gold and silver remained under pressure amid rising global bond yields and a stronger dollar. Elevated crude oil prices were also increasing concerns about inflation, which could keep US monetary policy tight for longer, he said.

Levels to watch

According to Ajay Kedia, director, Kedia Advisory, gold currently has support at ₹1,47,570. A sustained decline below this level could take prices towards ₹1,46,245.

 

On the upside, resistance is seen at ₹1,50,610. If gold sustains firmly above this level, prices could recover towards ₹1,52,325.

 

Overall, rising bond yields, expectations of a hawkish Federal Reserve stance and inflation concerns are likely to keep the market under pressure in the near term, he said.

 

Silver is also witnessing fresh selling pressure. Open interest rose 10.14 per cent to 16,422 even as prices declined by ₹7,254, indicating increased market participation during the fall.  

Silver currently has support at ₹2,24,730. A sustained decline below this level could take prices towards ₹2,22,015.

 

On the upside, resistance is seen at ₹ 2,31,230. A decisive move above this level could help silver recover towards ₹2,35,015.   

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