Gold prices on the Multi Commodity Exchange (MCX) saw a decrease in the opening session today as traders opted to secure profits following a notable surge in the previous trading day. In a similar trend, silver also experienced a decline of over 1.5% in early trades, indicating a slight cooling off after the robust momentum witnessed yesterday.
At the start of the day, gold futures on the MCX were down by 0.41% at 1,30,109 per 10 grams, contrasting with the previous day’s closing figure of 1,30,652. Concurrently, silver opened at 1,80,701 per kg, showing a decrease of 0.73% from its prior level of 1,82,030.
By 1:00 pm, gold was trading at Rs 1,27,517 per 10 grams, displaying a slight uptick of 0.16%, while silver stood at Rs 1,74,549 per kg, marking a decline of 2.05% on the MCX.
Experts attribute this pullback to a strong rally driven by global influences. Rahul Kalantri, VP Commodities at Mehta Equities, mentioned that the surge in precious metals was primarily fueled by the anticipation of interest rate cuts in the United States.
“Gold and silver prices surged significantly, with gold hitting a six-week peak and silver achieving new records due to the strengthening expectations of Fed rate reductions,” stated Kalantri. He also noted that subdued US economic data, a weaker dollar index, and dovish remarks from the Federal Reserve have intensified the pressure for policy easing.
Furthermore, he highlighted the bullish momentum seen in the silver market, which has encouraged traders to take long positions. Kalantri emphasized the key support and resistance levels that traders are closely monitoring. For gold, he anticipates support levels in the range of Rs 1,29,650–Rs 1,28,850 and resistance levels around Rs 1,31,450–Rs 1,32,100. Regarding silver, he identified support at Rs 1,80,750–Rs 1,79,200 and resistance near Rs 1,83,110–Rs 1,84,300.
Currently, market participants are awaiting the ADP jobs data and the delayed PCE inflation report for clearer market direction. Traders are likely to remain cautious until fresh economic indicators from the US provide more clarity on the future trajectory of gold and silver prices.