Gold & Silver Slip Nearly 2% As Strong Dollar & High Interest Rates Pressure Precious Metals
Gold and silver futures fell nearly 2% on MCX on Wednesday amid concerns that higher global interest rates and a stronger dollar index are pressuring precious metal demand. Gold (August) and silver (July) declined in domestic and global markets, with analysts expecting further weakness unless key resistance levels are reclaimed.
Gold & Silver Slip Nearly 2% As Strong Dollar & High Interest Rates Pressure Precious Metals | file pic
New Delhi: Gold and silver prices traded almost 2 per cent lower on Wednesday amid concerns that higher global interest rates could weigh on demand for precious metals.
On the Multi Commodity Exchange (MCX), gold futures (August) opened at Rs 1,45,000 per 10 grams, down Rs 1,528 or 1.04 per cent from the previous close of Rs 1,46,529.
At around 12:10 pm, the yellow metal was trading at Rs 1,45,216, lower by Rs 1,313 or 0.9 per cent. During the session so far, it touched an intraday low of Rs 1,44,114, a decrease of 1.64 per cent or Rs 2,415 and a high of Rs 1,45,480.
Meanwhile, silver futures (July) also remained under pressure.
The white metal opened at Rs 2,22,579 per kg on the exchange, down Rs 3,255 or 1.44 per cent from the previous close of Rs 2,25,834. At the last count, it declined as much as 1.84 per cent or Rs 4,176 to Rs 2,21,658.
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Weakness in precious metals was also visible in international markets. Spot gold was trading at $4,092.39 per ounce, down 0.4 per cent, while silver was at $61.82, a decrease of 0.33 per cent.
According to commodity market experts, immediate resistance for gold is seen in the Rs 1.45 lakh-Rs 1.46 lakh range. A sustained move above this zone could trigger a recovery towards Rs 1.47 lakh and eventually Rs 1.48 lakh. On the downside, a breach of the Rs 1.43 lakh level may intensify selling pressure and drag prices towards the Rs 1.40 lakh-Rs 1.39 lakh zone.
For silver, the experts said immediate resistance is placed in the Rs 2.25 lakh-Rs 2.26 lakh range, while a break below the Rs 2.20 lakh level could push prices towards Rs 2.15 lakh and lower.
Overall, they maintain a cautiously negative near-term outlook on both precious metals, citing persistent selling pressure and the need for prices to reclaim key resistance levels to improve momentum.
Moreover, the dollar index -- which measures the greenback's performance against a basket of six major currencies -- rose to 101.265.
The dollar index tracks the US currency against the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc.
(Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
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