Gold and silver prices saw a decline of almost 2% on Wednesday due to worries about higher global interest rates impacting the demand for these precious metals. On the Multi Commodity Exchange (MCX), gold futures for August started at Rs 1,45,000 per 10 grams, marking a decrease of Rs 1,528 or 1.04% from the previous closing price of Rs 1,46,529.
By midday around 12:10 pm, the price of gold stood at Rs 1,45,216, down by Rs 1,313 or 0.9%. The metal hit an intraday low of Rs 1,44,114, showing a decline of 1.64% or Rs 2,415, and reached a high of Rs 1,45,480 during the session.
Similarly, silver futures for July were also under pressure, opening at Rs 2,22,579 per kg on the exchange, which was Rs 3,255 or 1.44% lower than the previous close of Rs 2,25,834. At the latest update, silver dropped by as much as 1.84% or Rs 4,176 to Rs 2,21,658.
The weakness in precious metals was not limited to domestic markets, as international markets also reflected this trend. Spot gold was trading at $4,092.39 per ounce, down by 0.4%, while silver was at $61.82, showing a decrease of 0.33%.
Experts in the commodity market highlighted that gold faces immediate resistance in the range of Rs 1.45 lakh-Rs 1.46 lakh. A sustained rise above this level could lead to a recovery towards Rs 1.47 lakh and eventually Rs 1.48 lakh. Conversely, a drop below Rs 1.43 lakh might escalate selling pressure, pushing prices towards the Rs 1.40 lakh-Rs 1.39 lakh zone.
Regarding silver, analysts noted that immediate resistance is situated in the Rs 2.25 lakh-Rs 2.26 lakh range, with a potential decline below Rs 2.20 lakh driving prices towards Rs 2.15 lakh and below. Overall, a cautiously negative near-term outlook is maintained for both precious metals due to continuous selling pressure and the necessity for prices to reclaim crucial resistance levels to enhance momentum.
Additionally, the dollar index, which measures the performance of the US dollar against a basket of major currencies, climbed to 101.265. This index tracks the US currency against the euro, Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc.
