Gold Futures Decline Nearly 2%; Silver Falls Over Rs 3,700 Per Kg
MCX gold futures slid by as much as Rs 1,786 per 10 grams or 1.45% to Rs 1,21,141 per 10 grams, compared to their previous close of Rs 1,22,927 per 10 grams.
Gold and silver futures saw a nearly 2% decline on Tuesday tracking weakness in global rates that were hurt by fading expectations for another US interest rate reduction next month.
MCX gold futures slid by as much as Rs 1,786 per 10 grams or 1.45% to Rs 1,21,141 per 10 grams, compared to their previous close of Rs 1,22,927 per 10 grams. On the other hand, silver futures slid by as much as Rs 3,637 per 1 kg or 2.34% to Rs 1,51,675, compared to their previous close of Rs 1,55,312 per 10 grams.
Gold bullion fell toward $4,015 an ounce, after losing almost 4% over the prior three sessions.
"Hawkish stance from Fed officials continued to curb bullion’s upside. Fed Vice Chair Philip Jefferson stressed the need to “proceed slowly” with further easing, prompting traders to scale back rate-cut expectations to a 41% probability for December, from over 60% last week," said Kotak Securities.
Moreover, investors await delayed economic data that could give some clarity on the state of economy, added ICICI Direct and ICICI Securities. Meanwhile, a firmer US Dollar Index and slightly higher 10-year Treasury yields added pressure to precious metals.
"With no major positive fundamental triggers in recent days, bulls remain hesitant—especially with both metals still trading at historically high levels," said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Gold's support stands at Rs 1,21,000 and a breakdown below this level can open room for a deeper correction towards the crucial Rs 1,19,000 crore, said Ponmudi R, CEO of Enrich Money.
Ponmoudi also added that for silver immediate resistance zone of Rs 1,53,300 and Rs 1,53,900 which will guide the next level of price action.
