Precious metals came under pressure on Tuesday, Oct. 6, with MCX gold and silver prices losing their shine today. Earlier in the session, the yellow metal declined to a low of Rs 1,48,701 per 10 gms, from its previous close at Rs 1,49,316, losing more than Rs 600.
Silver declined faster than gold, falling to a low of Rs 2,24,377 per kg earlier in the day, from its last close at Rs 2,26,087, shedding more than Rs 1,700.
The bullion market remained under pressure, with both precious metals facing a weak technical setup as traders awaited key US economic and Federal Reserve-related cues.
Gold Price Technical Outlook
Ajay Kedia, Director at Kedia Advisory, said that the gold price remains below both the 50-day and 200-day moving averages, while the MACD has turned bearish, keeping the near-term bias weak.
Gold is expected to remain range-bound ahead of the FOMC Meeting Minutes, with traders awaiting fresh signals on the Federal Reserve's policy outlook. Economic data due later in the week could add volatility and determine the next directional move.
According to Kedia, gold has support at Rs 1,48,650 and Rs 1,47,480, while resistance is placed at Rs 1,49,700 and between Rs 1,50,300 and Rs 1,50,800.
Silver Price Technical Outlook
Coming to the white metal, it has been under pressure after surging for the past few sessions. MCX silver futures expiring Dec. 4 were trading below the 50-day moving average and well below the 200-day moving average, as Kedia commented. He added that the recent recovery towards Rs 2,27,500 faced selling pressure, while the MACD has turned bearish.
Kedia said silver is consolidating within the range of Rs 2,23,500 to Rs 2,27,500. A sustained breakout above Rs 2,27,500 could improve momentum, while a break below Rs 2,23,500 could accelerate the downside.
Silver has support at Rs 2,24,000 and Rs 2,23,500, while resistance is at Rs 2,26,770, Rs 2,27,500 and Rs 2,30,634.
The FOMC Meeting Minutes on Wednesday could be the major trigger for both metals. Apart from that, there are Waller's remarks and US weekly jobless claims due on Thursday, followed by US consumer sentiment and inflation expectations data on Friday, which can further add to the price volatility.
Gold And Silver Price Movement
Around 1:47 p.m., MCX gold futures expiring Dec. 4 were trading at Rs 1,49,426, gaining around 0.07% from its previous close, while silver futures gained around 0.08% to trade at Rs 2,26,268, reclaiming yesterday's price levels.
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