Gold Prices Dip to ₹1.47 Lakh per 10 Grams as Silver Plummets by ₹6,000 per Kg Today

Gold and silver prices in India opened significantly lower on the Multi Commodity Exchange (MCX) on Friday, reflecting a bearish trend that has emerged in the global bullion market. The MCX gold rate for August futures opened at ₹1,47,175 per 10 grams, down ₹2,134, or 1.43%, from the previous close. Similarly, MCX silver for July futures opened at ₹2,32,371 per kg, a drop of ₹5,201, or 2.19%. By 9:10 AM, gold was trading at ₹1,47,196, while silver plunged to ₹2,30,774, marking substantial declines across both precious metals.

The decline in prices is primarily driven by expectations of sustained higher interest rates coupled with a robust US dollar, which has put downward pressure on gold and silver. Spot gold prices fell 0.6% to $4,184.33 per ounce, and market analysts revealed that the Federal Reserve’s recent discussions hinted at potential rate hikes, with a significant 87% probability of an increase by December. Concurrently, Goldman Sachs has revised its gold price forecast downwards to $4,900 per ounce, reflecting less optimism regarding a rate cut this year. Such macroeconomic indicators make gold less attractive as an investment since it does not yield interest, ultimately steering traders away from bullion.

Short-term outlook for traders and investors remains grim, with bearish sentiments prevailing in the commodity market. Analysts forecast that MCX gold may find support at ₹1,45,500, while resistance is pegged at ₹1,48,000. Silver is expected to test support at ₹2,27,000, with a resistance level set at ₹2,35,000. The combination of strong dollar trends and potential interest rate hikes suggests that traders should remain cautious, as further price declines may be imminent in the coming sessions, urging investors to reevaluate their positions.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)