Gold and silver prices experienced a decline of up to 3% on Tuesday due to increasing expectations of additional US Federal Reserve rate hikes, impacting global investor sentiment. On the Multi Commodity Exchange (MCX), gold futures (August) opened lower at Rs 1,46,776 per 10 grams, down by 0.95% from the previous close.
By midday, gold was trading at Rs 1,46,379, a decrease of 1.17%. Silver futures (July) saw more significant losses compared to gold, opening at Rs 2,27,676 per kg, down by 2.83% from its previous close. Silver was trading at Rs 2,27,119, marking a 3.07% decline.
Market analysts noted that MCX gold is facing pressure despite efforts to stabilize above key support levels. Immediate support is identified in the Rs 1,46,000-Rs 1,45,600 range, with resistance at Rs 1,48,000-Rs 1,48,400. A sustained move above the resistance zone could enhance momentum and drive prices towards Rs 1,49,000-Rs 1,50,000 levels.
For silver, analysts mentioned a weak near-term bias following a sharp gap-down opening. Immediate resistance is at Rs 2,30,500-Rs 2,31,600, while breaking below the Rs 2,28,000 support level could lead to price declines to Rs 2,26,000 and even Rs 2,24,000. Reclaiming the Rs 2,30,000 mark is crucial for a potential recovery.
The weakness in precious metals is attributed to the strength of the US dollar and expectations of the US Federal Reserve maintaining a tight monetary stance to combat inflation. Investors are closely monitoring upcoming US employment and unemployment data, anticipated later in the week, which could significantly impact gold and silver prices.
In the commodities market, international benchmark Brent crude dropped by 0.5% to $77.51 per barrel, while US West Texas Intermediate (WTI) crude fell by 0.35% to $73.60 per barrel.
