Precious metals fall ahead of US inflation data
Silver dropped 1,500 rupees per kg while gold slipped to 1.53 lakh rupees. Traders are advised to secure gains before US economic data releases.
Silver prices fell by 1,500 rupees per kilogram on the Multi Commodity Exchange. Gold prices simultaneously declined to 1.53 lakh rupees per ten grams. This drop occurred ahead of the release of key US inflation indicators. Market participants remain cautious due to elevated expectations for interest rate hikes. Geopolitical tensions in the Middle East have added volatility to the precious metals sector.
The US dollar stayed weak, making dollar-denominated metals more accessible for global investors. The CME FedWatch Tool indicates a 60% probability of a US rate increase this month. Higher interest rates typically reduce the appeal of non-yielding assets like gold and silver. Spot gold traded at 4,412.84 dollars per ounce, up 0.3% in international markets. Spot silver gained 0.2% to 67.42 dollars per ounce.
Rate expectations drive metal volatility
Manoj Kumar Jain of Prithvifinmart expects continued volatility in gold and silver prices. He attributes this to fluctuations in crude oil prices and the dollar index. Analysts suggest that gold will find support between 4,385 and 4,420 dollars per ounce. Resistance is expected in the 4,484 to 4,510 dollar range. Silver support lies between 66.00 and 67.40 dollars per ounce.
On the MCX, gold support is identified at 1.5165 lakh to 1.525 lakh rupees. Resistance levels are set at 1.544 lakh to 1.555 lakh rupees. Silver support ranges from 2.391 lakh to 2.414 lakh rupees per kilogram. Resistance for silver is projected between 2.458 lakh and 2.480 lakh rupees. Traders are advised to book profits on existing long positions before the US data release.
Physical gold prices remain stable
Standard 22-carat gold in Delhi is priced at 1.13272 lakh rupees per 8 grams. Pure 24-carat gold stands at 1.23560 lakh rupees in the same market. In Mumbai, 22-carat gold costs 1.13152 lakh rupees per 8 grams. The price for 24-carat gold in Mumbai is 1.23440 lakh rupees. These physical market rates show minimal variation compared to previous days.
Chennai reports 22-carat gold at 1.13152 lakh rupees per 8 grams. Pure gold in Chennai is available at 1.23440 lakh rupees. Hyderabad prices mirror those in Chennai for both 22-carat and 24-carat gold. The GN auto markets/commodities: silver prices report highlights these regional consistency figures. Investors should monitor these levels for entry opportunities during dips.
Geopolitical risks influence market behavior
Iran stated it attacked ten ships near the Strait of Hormuz. This followed the US sinking five Iranian oil tankers. This represents the largest wave of shipping attacks since the current conflict began. Such events typically drive safe-haven demand for precious metals. However, the upcoming US inflation data may override these geopolitical factors in the short term.
