- Gold and silver prices rose amid US-Iran tensions and expectations of Fed rate hikes
- Spot gold increased 0.7% to $4,303 while silver climbed 1.5% to around $64.8 per ounce
- Indian MCX gold and silver futures also gained, rising 0.7% and 1.21% respectively
Gold and silver prices gained on Friday, September 25 amid US-Iran uncertainties, higher bond yields and fueled expectations of further rate hikes by Federal Reserve.
Spot gold rose 0.7% to $4,303 today, down almost 2% from last Friday, while Silver also climbed 1.5% to around $64.8/oz.
In India too, bullion prices jumped as MCX gold October futures contract advanced 0.7% to Rs 1,51,669 per 10 grams, while MCX silver December futures contract climbed 1.21% to Rs 2,36,301 per kg.
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According to Kotak, higher oil prices have raised inflation concerns, pushing Treasury yields up and increasing expectations of additional rate hikes by Fed, increasing the opportunity cost of holding non-yielding bullion. Firmer US economic data and fiscal concerns are adding to pressure, keeping gold below recent highs despite its longer-term safe-haven appeal.
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Continued decline in oil prices, easing yields or renewed geopolitical and fiscal-risk demand could revive investment flows and support gold's hedge function. However, energy inflation and higher-for-longer rates remain key near-term headwinds, it said.
With gold around $4,300, a fresh catalyst is required for the next move. Fundamental outlook is cautiously positive medium term, but pressured near term, Kotak added.
Technical Levels To Watch
Kotak expects Spot Gold to face resistance at $4,321.5. If this level is breached, then the metal will find next key resistance at $ 4339.7. A furtherupside will move the next resistance $ 4,398.8 level, the analysts highlighted. Support is seen at $ 4,262.4, followed by $ 4,244.1 and $ 4,185.
In case of MCX Gold October futures, resistance levels are placed at Rs 1,52,157, Rs 1,52,602 and Rs 1,54,043. Analysts expect support level at Rs 1,50,717, Rs 1,50,272 and Rs 1,48,831.
In terms Silver, Kotak estimates resistance for Spot Silver at $65.44, followed by $ 65.95 and further upside of $67.62. Support is seen at $63.77, $63.26 and $61.59.
On MCX, Silver is likely to face resistance at Rs 2,38,099, Rs 2,39,290 and Rs 2,43,145. Support is placed at Rs 2,34,245, Rs 2,33,054 and Rs 2,29,199.
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