Silver slips below ₹2 lakh amid selling pressure; gold also declines

Gold and silver remained under pressure on Friday, October 23, amid a sell-off in global equity markets and crude oil prices rising above $100 a barrel.

 

Higher crude oil prices have intensified inflation concerns and strengthened expectations that interest rates could remain elevated for longer. Gold and silver were trading weak in early trade after recording sharp losses in the previous session. Silver futures in the domestic market slipped below ₹2 lakh per kg.

 

In the global market, gold futures on Comex were trading near $4,030 per ounce, while silver was trading near $54 per ounce. In the domestic market, gold futures on the Multi Commodity Exchange (MCX) were trading near ₹1,42,300 per 10 gram at the time of writing, while silver futures were trading near ₹1,96,000 per kg.

 

Gold prices fall

Gold futures opened lower. On the MCX, the benchmark December gold contract opened ₹1,251 lower at ₹1,42,058 per 10 gram. The previous close was ₹1,43,309.

 

At the time of writing, the contract was trading ₹1,002 lower at ₹1,42,307.

 

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

Silver slips below ₹2 lakh

Silver futures also opened lower. On the MCX, the benchmark December silver contract opened ₹3,012 lower at ₹1,96,587 per kg. The previous close was ₹1,99,599.

 

At the time of writing, the contract was trading ₹3,568 lower at ₹1,96,031.

 

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 $4,042.20 per ounce. The previous closing price was $4,060.40. At the time of writing, it was trading $27.90 lower at $4,032.50 per ounce.

 

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

 

Comex silver futures opened at $54.69 per ounce. The previous closing price was $55. At the time of writing, it was trading $0.96 lower at $54.04 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 0.29 per cent to 16,645 contracts as prices declined by ₹2,770, indicating the creation of fresh positions during the fall.

 

The technical data placed support at ₹1,42,520, followed by ₹1,41,740. Resistance was seen at ₹1,44,610 and ₹1,45,910.

 

A sustained move below immediate support could increase bearish pressure, while a recovery above ₹1,44,610 could improve market sentiment and take prices towards the next resistance level.

 

The current gold price quoted in the report, at ₹1,42,307, is already below the first stated support level. 

Silver sees long unwinding

Silver was technically witnessing long unwinding, Kedia said. Open interest declined 4.27 per cent to 19,038 contracts as prices fell by ₹9,569, indicating the closure of existing positions rather than the creation of fresh shorts.

 

The technical data placed support at ₹1,96,940, followed by ₹1,94,290. Resistance was seen at ₹2,04,130 and ₹2,08,660.

 

A break below support could deepen the decline. However, a sustained move above ₹2,04,130 could improve sentiment and take prices towards the next resistance level.

 

The current silver price quoted in the report, at ₹1,96,031, is already below the first stated support level.

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.