MCX Gold Slides to 151,900 as Fed Hike Pressures Metals
Gold and silver face continued selling pressure following the Federal Reserve rate decision.
MCX Gold trades at 151,900 rupees, marking a significant decline from recent highs. Silver follows suit with a current price of 235,200 rupees. Both metals show a clear bearish trend on weekly charts. The recent hike in US Federal Reserve interest rates has increased volatility. This monetary tightening reduces the appeal of non-yielding assets. Traders now expect a sideways to negative bias in the near term.
Abhilash Koikkara, Head of Forex & Commodities at Nuvama, warns of sustained selling pressure. He identifies the current correction as a potential accumulation opportunity. The base trend remains positive despite the short-term drop. A decisive breakdown from the consolidation range could trigger further losses. Buyers are expected to step in only if specific support levels hold.
Gold Support and Resistance Levels
The first critical support for gold sits at 148,000 rupees. A sustained break below this level targets the 144,000 to 140,000 zone. The recommended trading strategy sets a target at 144,000 rupees. Traders should place a stop loss at 155,000 rupees. This upper level acts as the key resistance barrier.
A daily close above 155,000 rupees would negate the bearish bias. Such a move would signal the resumption of the bullish trend. Currently, momentum remains negative with lower lows being formed. The weekly trend leans toward further correction. Gold is well-placed to extend its downward move in upcoming sessions.
Silver Faces Yield Headwinds
Rising US Treasury yields impact silver prices significantly. Higher interest rates make holding silver less attractive. The short-term bias for silver is sideways to negative. The 225,000 rupee level stands as strong support. A firm close below this mark would shift the outlook to negative.
The immediate resistance for silver is located at 242,000 rupees. The next resistance level is at 248,000 rupees. Breaking above 248,000 would confirm the bullish bias. The current strategy targets 225,000 rupees for profit. A stop loss is recommended at 242,000 rupees.
Market Outlook for September
The broader setup continues to favor an upside bounce. Prices are expected to work through this corrective phase. GN auto markets/commodities: silver prices data shows the current struggle. The consolidation phase must halt before a new direction emerges. Selling pressure remains dominant in the immediate term. Traders should watch for a decisive break from the current range.
