Mumbai: Gold and silver prices witnessed weakness and declined up to 3 per cent on Tuesday as rising expectations of further US Federal Reserve rate hikes weighed on investor sentiment globally.
On the Multi Commodity Exchange (MCX), gold futures (August) opened at Rs 1,46,776 per 10 grams, down Rs 1,412 or 0.95 per cent from the previous close of Rs 1,48,188.
At around 12 pm, the yellow metal was trading at Rs 1,46,379, lower by Rs 1,739 or 1.17 per cent. During the session so far, it touched a high of Rs 1,47,090, down Rs 1,098 or 0.74 per cent from the previous close, and a low of Rs 1,46,070, declining Rs 2,118 or 1.42 per cent.
On the other hand, silver futures (July) witnessed sharper losses than gold. The white metal opened at Rs 2,27,676 per kg, down Rs 6,634 or 2.83 per cent from its previous close of Rs 2,34,310.
Silver was later trading at Rs 2,27,119, down Rs 7,191 or 3.07 per cent. So far in the day’s trade, the white metal touched a low of Rs 2,26,556, plunging Rs 7,754 or 3.30 per cent, and a high of Rs 2,28,800.
According to market experts, MCX gold remains under pressure despite attempting to stabilise above key support levels. Analysts said immediate support is placed in the Rs 1,46,000-Rs 1,45,600 range, while resistance is seen at Rs 1,48,000-Rs 1,48,400.
A sustained move above the resistance zone could improve momentum and push prices towards Rs 1,49,000-Rs 1,50,000 levels.
For silver, analysts said the near-term bias remains weak after the metal opened with a sharp gap-down.
Immediate resistance is placed at Rs 2,30,500-Rs 2,31,600, while a decisive break below the Rs 2,28,000 support level could drag prices towards Rs 2,26,000 and even Rs 2,24,000. Reclaiming the Rs 2,30,000 mark would be crucial to support a recovery, they added.
The experts attributed the weakness in precious metals to the strength in the US dollar and expectations that the US Federal Reserve may continue to maintain a tight monetary stance to contain inflation.
They further noted that investors are now closely watching upcoming US employment and unemployment data due later this week, which could emerge as the next major trigger for gold and silver prices.
In the commodities market, international benchmark Brent crude fell 0.5 per cent to $77.51 per barrel, while US West Texas Intermediate (WTI) crude declined 0.35 per cent to $73.60 per barrel.
(IANS)
