- Gold rose 0.43% to $4,175 amid higher oil prices and bond yields on October 1
- Silver gained 0.79% to $60.9/oz with MCX gold and silver futures also showing strong gains
- US 10-year Treasury yields hit highest since 2002, pressuring gold prices despite gains
Gold and silver gained on Thursday, October 1 amid elevated oil prices and higher government bond yields.
Spot gold rose 0.43% to $4,175 on Thursday, while Silver climbed around 0.79% to $60.9/oz.
In India, MCX gold October futures contract jumped 1.02% to Rs 1,47,649 per 10 grams, while MCX silver December futures contract surged 0.94% to Rs 2,25,804 per kg.
Precious metals rose after long-dated government bond yields touched fresh multi-decade highs, with the 10-year Treasury rate reaching its highest level since 2002. Higher yields usually weigh on gold, as the bullion does not pay interest.
Meanwhile, oil prices have remained volatile as US-Iran heightened fears of global supply disruptions. The yellow metal has reacted to these developments in recent months, as rising energy prices raise inflation concerns and could push the Federal Reserve to hike interest rates further
However, the central bank's top pick to measure underlying inflation, the personal consumption expenditure price index excluding food and energy climbed by a slightly less-than-expected 0.2% in August. Traders now expect a 37% chance of a rate hike in October rate hike, down from about 70% earlier in the week.
In September, gold slipped 6%, marking its worst monthly loss since June as Fed hiked rates for the first time since 2023 and hinted at further tightening, if required.
Technical levels to watch
Kotak expects Spot Gold to face resistance at $4,207. If this level is breached, then the metal will find next key resistance at $ 4,226. A further upside will move the next resistance $ 4,287 level, the analysts highlighted. Support is seen at $ 4,146, followed by $ 4,128 and $ 4,067. Buying zone is set at $4,128 and selling zone at $4,226.
In case of MCX Gold October futures, resistance levels are placed at Rs 1,47,913, Rs 1,48,421 and Rs 1,50,066. Analysts expect support level at Rs 1,46,267, Rs 1,45,759 and Rs 1,44,114. Buying zone is set at Rs 1,45,759 and selling zone at Rs 1,48,421.
In terms of silver, Kotak estimates resistance for Spot Silver at $61.9, followed by $62.35 and further upside of $63.9. Support is seen at $60.4, $59.9 and $58.4. Buying zone is set at $59.9 and selling zone at $62.35.
On MCX, Silver is likely to face resistance at Rs 2,27,885, Rs 2,29,007 and Rs 2,32,640. Support is placed at Rs 2,24,252, Rs 2,23,129 and Rs 2,19,496. Buying zone is set at Rs 2,23,129 and selling zone at Rs 2,29,007.
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