Gold Rates Dip Below ₹1.53 Lakh per 10 Grams as Silver Prices Plunge by ₹6,000 per Kg Today
Gold and silver prices in India experienced a significant downturn on the Multi Commodity Exchange, driven by heavy selling amidst adverse global trends. MCX gold for August futures opened at ₹1,52,306 per 10 grams, reflecting a drop of ₹1,573, or 1%, from the previous close of ₹1,53,879. Similarly, MCX silver saw its July futures contract open lower by ₹3,807, or 1.51%, settling at ₹2,48,000 per kg. Early trading revealed further declines, with gold prices dropping to a low of ₹1,52,304 and silver plummeting to ₹2,45,509, extending the negative sentiment felt in global markets where prices had initially fallen overnight due to anticipated US interest rate hikes.
The recent price movements can be attributed to a confluence of factors that are shaping the precious metals market. The US Federal Reserve’s hint at potential interest rate hikes later in the year—currently with an 85% chance projected for December—has heightened uncertainty, leading to a reduced demand for non-yielding assets like gold and silver. Additionally, positive developments regarding the US-Iran peace deal dampened inflationary fears, providing support for bullion prices internationally, where gold recouped some losses by rising more than 1% to $4,316.42 per ounce. This bifurcation in price developments reflects the complex dynamic between inflation expectations and monetary policy considerations.
Short-term outlook for traders suggests continued volatility, with significant resistance and support levels shaping market behavior. Jigar Trivedi, a Senior Research Analyst, posits a bearish stance for MCX gold, identifying support at ₹1,51,800 and resistance at ₹1,53,300, while silver is expected to face similar headwinds with support at ₹2,42,000 and resistance at ₹2,51,000. Traders may find opportunities for short-covering given the rapid market shifts, but caution is warranted as a hawkish stance from the Federal Reserve could further suppress demand for precious metals, particularly if broader economic indicators continue to favor a tightening monetary policy.
Source: Market Source
(Expert Note: This report was independently prepared by the Wealthova Commodities team.)