Gold, silver prices fall on stronger dollar, sharp rise in US bond yields

A stronger dollar and a sharp rise in US bond yields outweighed the support from weak employment data, putting pressure on gold and silver prices on Tuesday, October 6.

 

In the global market, gold futures on Comex were trading near $4,150 per ounce, while silver was trading near $61 per ounce. In the domestic market, gold futures on the Multi Commodity Exchange (MCX) were trading near ₹1,49,300 per 10 gram at the time of writing, while silver futures were trading near ₹2,25,600 per kg.

Gold turns lower

Gold futures opened lower on the MCX. The benchmark December gold contract opened ₹388 lower at ₹1,48,928 per 10 gram. The previous close was ₹1,49,316.

 

 

At the time of writing, the contract was trading ₹150 lower at ₹1,49,166.

 

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

Silver also declines

Silver futures also opened lower. On the MCX, the benchmark December silver contract opened ₹960 lower at ₹2,25,127 per kg. The previous close was ₹2,26,087.

 

At the time of writing, the contract was trading ₹486 lower at ₹2,25,601.

 

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

Gold, silver weaken in global market

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

 

On Comex, gold opened at $4,169.20 per ounce. The previous closing price was $4,156.80. At the time of writing, however, it was trading $3.70 lower at $4,153.10 per ounce.

 

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

 

Comex silver futures opened at $61.39 per ounce. The previous closing price was $61.30. At the time of writing, silver was trading $0.28 lower at $61.02 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, selling pressure has again increased in gold from a technical perspective. Open interest rose 2.3 per cent to 16,322, while prices fell by ₹1,074. This indicates fresh bearish participation in the market, he said.

 

Gold currently has support at ₹1,48,385. A sustained fall below this level could take prices towards ₹1,47,445.

 

On the upside, resistance is seen at ₹1,50,730. A decisive move above this level could help gold recover towards ₹1,52,135.

 

Kedia said silver was witnessing short covering from a technical perspective. Open interest fell 0.81 per cent to 16,450, while prices rose by ₹210, indicating some fresh buying after the recent weakness.

 

Silver currently has support at ₹2,24,895. A sustained fall below this level could take prices towards ₹2,23,700.

 

On the upside, resistance is seen at ₹2,27,990. A decisive move above this level could help silver recover further towards ₹2,29,890. 

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.