Gold and silver futures rose sharply on the Multi Commodity Exchange of India Ltd. on Friday, Oct. 9, with silver outperforming gold. At 11:29 a.m., gold futures expiring on Dec. 4 were trading at Rs 1,51,299 per 10 grams, up Rs 1,689, or 1.13%, from the previous close of Rs 1,49,610.
Earlier in the session, gold had reached Rs 1,51,650, marking a gain of Rs 2,040 over the previous close.
Meanwhile, silver futures for December delivery were trading at Rs 2,24,664 per kg, up Rs 3,431, or 1.55%, from the previous close of Rs 2,21,233. The contract had touched Rs 2,25,339 earlier in the day, gaining Rs 4,106, or 1.86%, from the previous close.
Why Are Gold And Silver Prices Rising Today?
The recovery in international bullion markets, supported by a weaker US dollar and easing US Treasury yields, is primarily driving precious metals' prices up today. A softer dollar makes gold cheaper for buyers using other currencies, while lower bond yields reduce the opportunity cost of holding gold, which does not pay interest.
10-year Treasury yields in the US have fallen for the second straight session, making the non-yielding assets regain momentum.
Oil prices also eased as Trump said no more attacks on Iran until the US midterm elections, which are about to take place in November. However, inflation concerns and the US Federal Reserve's interest-rate outlook continue to influence bullion prices. Expectations of higher interest rates could limit gains by making interest-bearing assets more attractive than gold.
Silver is outperforming gold in domestic futures trading, reflecting the broader recovery in precious metals.
Gold And Silver: Technical Outlook
Ponmudi R, CEO of Enrich Money, said that the yellow metal has moved above the Rs 1,50,000 to Rs 1,50,700 range, which had acted as resistance and is now serving as support. The next resistance levels are Rs 1,52,000 to Rs 1,52,600 and Rs 1,54,000 to Rs 1,54,700. Support is placed at Rs 1,50,000 to Rs 1,50,700, followed by Rs 1,47,300 to Rs 1,48,000.
A sustained move above Rs 1,52,000 could extend gold's recovery, while a fall below Rs 1,50,000 could pull prices towards Rs 1,48,000.
Silver is holding above the Rs 2,23,000 to Rs 2,24,000 support zone. The next resistance range is Rs 2,28,000 to Rs 2,29,000, followed by Rs 2,32,000 to Rs 2,33,000. On the downside, support is placed at Rs 2,24,000 to Rs 2,23,000, with another support zone at Rs 2,20,000 to Rs 2,19,000.
A sustained move above Rs 2,28,000 could extend silver's recovery, while a decisive fall below Rs 2,24,000 could expose it to a decline towards Rs 2,20,000.
Also Read: US-Iran Tensions: Trump Weighs Resuming Strikes Before Midterms, Military Told To Stay Ready
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