Gold and silver prices extended their decline on Tuesday, Sept. 29, with both precious metals trading lower on the Multi Commodity Exchange.
MCX gold futures with October expiry were trading at Rs 1,46,023 per 10 grams, down Rs 781, or 0.53%, from the previous close of Rs 1,46,804. MCX silver futures with December expiry were at Rs 2,25,000 per kg, declining Rs 2,442, or 1.07%, from the previous close of Rs 2,27,442 around 10:30 a.m. today.
In the early hours of today's session, MCX gold futures declined around Rs 1,266 as the price of the yellow metal touched a low of Rs 1,45,538. Likewise, silver futures tanked around Rs 2,942 to a low of Rs 2,24,500 against its previous close.
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The correction in precious metals comes amid pressure from higher US yields, a stronger dollar, and rising crude oil prices. Higher crude prices could add to inflationary pressures and increase expectations of another US rate hike in December, while elevated yields and a stronger dollar tend to weigh on non-yielding assets such as gold and silver.
Satish Dondapati, Fund Manager, ETF at Kotak Mutual Fund, said gold and silver have corrected due to higher US yields and crude prices. “Higher crude may push inflation higher, increasing the odds of another rate hike in December,” he said.
However, the medium to long-term outlook remains positive, supported by global debt, central-bank buying, and rising portfolio allocation, as indicated by Dondapati.
Gold Rebounds From Oversold Levels
According to Ponmudi R, CEO of Enrich Money, MCX gold has broken below the Rs 1,50,000 level, which has now turned into an immediate resistance zone.
He sees immediate resistance at Rs 1,50,000–Rs 1,50,700, followed by Rs 1,52,000–Rs 1,52,600. On the downside, support is placed at Rs 1,48,000–Rs 1,47,300, followed by Rs 1,46,000–Rs 1,45,300.
The RSI at 41 remains below its signal line but is recovering from oversold levels, while the MACD histogram is narrowing in negative territory, suggesting a possible bottoming attempt.
Silver Faces Stronger Downside Pressure
MCX silver is trading below the Rs 2,27,000–Rs 2,28,000 zone, which has turned into resistance after Monday's steep decline from around Rs 2,32,000.
Ponmudi sees immediate resistance at Rs 2,27,000–Rs 2,28,000, followed by Rs 2,32,000–Rs 2,33,000. Support is placed at Rs 2,24,000–Rs 2,23,000, followed by Rs 2,20,000–Rs 2,19,000.
The RSI at 38 remains weak, while the widening MACD histogram indicates persistent downside momentum. He also stated that industrial demand is offering only partial support against broader dollar and yield-driven weakness.
The analyst's near-term view remains “cautious to negative” for silver. A sustained move above Rs 2,28,000 could stabilise the setup, while a decisive break below Rs 2,24,000 could expose silver to the Rs 2,20,000 region.
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