Gold slips below ₹1.50 lakh on US-Iran impasse; silver tumbles too

An impasse in talks between the US and Iran has kept crude oil prices elevated, strengthening expectations that the Federal Reserve could raise interest rates further. Gold and silver prices fell sharply on Monday, September 28.

 

In the global market, gold futures on Comex fell to around $4,230 per ounce, touching a seven-week low, while silver slipped below $62.50 per ounce.

 

In the domestic market, gold futures on the Multi Commodity Exchange (MCX) fell below ₹1.50 lakh per 10 gram at the time of writing, while silver futures dropped below ₹2.30 lakh per kg.

Gold falls below ₹1.50 lakh

Gold futures opened lower. On the MCX, the benchmark October gold contract opened ₹751 lower at ₹ 1,50,100 per 10 gram. The previous close was ₹1,50,851.

 

 

At the time of writing, the contract was trading ₹2,781 lower at ₹1,48,100.

 

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

Silver also tumbles

Silver futures also opened on a weak note. On the MCX, the benchmark December silver contract opened ₹2,396 lower at ₹2,32,300 per kg. The previous close was ₹2,34,696.

 

At the time of writing, the contract was trading ₹6,146 lower at ₹2,28,550.

 

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

Gold, silver slide in global market

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

 

On Comex, gold opened at $4,315 per ounce. The previous closing price was $4,321.20. At the time of writing, it was trading $96.60 lower at $4,224.60 per ounce.

 

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

 

Comex silver futures opened at $64.66 per ounce. The previous closing price was $64.80. At the time of writing, silver was trading $2.40 lower at $62.40 per ounce.

 

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

Why are gold and silver under pressure?

Vikram Subburaj, chief executive officer of Giottus.com, said elevated oil prices had increased inflation concerns, keeping alive expectations of further interest-rate increases in the US.

 

A stronger dollar and higher interest rates could put pressure on non-interest-bearing assets such as gold, he said.

 

For Indian investors, movements in the rupee would also remain important. This week, markets will track US inflation and employment data along with oil prices, the dollar and geopolitical developments, he said.

Levels to watch

According to Ajay Kedia, director, Kedia Advisory, gold is expected to trade in a range of ₹1,49,505 to ₹1,52,685 on Monday.

 

Silver, meanwhile, could trade in a range of ₹2,29,965 to ₹2,39,565 per kg, he said.

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.