- Gold prices in India fell by Rs 780 to Rs 1,55,160 per 10 grams on Tuesday
- Silver prices declined Rs 2,651 to Rs 2,35,397 per kg amid profit booking
- Rising crude oil and inflation fears impacted investment demand for gold
Gold and silver prices in India traded sharply lower on Tuesday amid profit booking after a sharp rise in the previous session.
MCX gold rate for October futures contracts traded lower by Rs 780, or 0.50%, at Rs 1,55,160 per 10 grams level. It hit an intraday low of Rs 1,54,925 level, falling more than Rs 1,000 from previous close.
MCX silver price for September futures contracts fell by Rs 2,651, or 1.11%, to Rs 2,35,397 per kg level. It touched a low of Rs 2,35,201 level.
A surge in crude oil prices stoked inflation fears and raised expectations of interest rate hike by the US Federal Reserve, denting investment demand for the yellow metal.
“Investors opted for profit-booking after a strong rally in gold prices. Bullion may fall further amid higher oil and Treasury yields in the US. Market expects no US Fed rate hike in September and the dollar has dropped,” said Jigar Trivedi, Senior Research Analyst at IndusInd Securities.
He believes the only supporting factor for gold prices is rising investment demand from China.
Gold Price Outlook
According to Trivedi, MCX gold price may find support at Rs 1,55,000 – Rs 154,800 levels, while resistance is seen at Rs 1,55,600 – Rs 155,800 levels.
Ponmudi R, CEO, Enrich Money said that the immediate support for MCX gold price is at Rs 1,53,300 - Rs 1,52,700 levels, with next support at Rs 1,50,700 - Rs 1,50,000.
“Immediate resistance is placed at Rs 1,56,000 - Rs 1,56,500, and a break above the targets may see next resistance at Rs 1,58,000 - Rs 1,58,600. RSI at 67.05, easing from its recent peak, reflects momentum cooling slightly, though the broader trend remains bullish,” said Ponmudi R.
According to him, the bias for gold price stays cautious above Rs 1,53,300, with a hold needed to retest Rs 1,56,500. A slip below Rs 1,52,700 risks a deeper pullback.
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Silver Price Outlook
Trivedi said that support for MCX silver is placed at Rs 2,34,600 – Rs 2,33,500 level and resistance is seen at Rs 2,37,000 – Rs 2,38,000 level.
Ponmudi R said MCX silver price faces immediate resistance at Rs 2,40,000 – Rs 2,41,000 levels, and a break above the targets, next resistance is at Rs 2,45,000 – 2,46,000. Immediate support is at Rs 2,32,000 – Rs 2,31,000, with next support at Rs 2,26,000 – Rs 2,25,000 levels.
“RSI at 57.23, easing, shows momentum cooling from recent highs. Silver's pullback mirrors the broader precious metals consolidation today. Bias stays cautious above Rs 2,32,000, with a hold needed to retest Rs 2,41,000. A slip below Rs 2,31,000 risks a deeper pullback toward Rs 2,26,000,” he added.
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