Mumbai: Gold and silver prices traded up to 1 per cent higher on Wednesday amid softer crude oil prices and lower US bond yields, while investors awaited the US Federal Reserve’s policy decision.
At around 10:45 am, gold futures (October) were trading at 1,51,598, an increase of 0.52 per cent or Rs 789. The yellow metal recorded an intraday high of Rs 1,52,100 so far, jumping nearly 1 per cent or Rs 1,291. While it touched an intraday low of Rs 1,51,450, still an increase of about half per cent.
Meanwhile, silver futures (December) surged as much as 1.66 per cent or Rs 3,870 to hit an intraday high of Rs 2,35,988.
At the last count, the white metal was trading at 2,35,079, up Rs 2,961 or 1.28 per cent. It touched an intraday low of 2,34,540, a surge of 1.04 per cent or Rs 2,422.
Analysts said MCX gold opened with a mild gap-up but remained capped by its 50-day exponential moving average. The contract recovered from the Rs 1,50,700-1,50,000 support zone.
Immediate resistance for gold is seen at Rs 1,54,000-1,54,700, with a break above that zone potentially opening the way towards Rs 1,56,300-1,57,000. Support is placed at Rs 1,50,700-1,50,000, followed by Rs 1,48,000-1,47,300.
MCX silver also opened higher and traded near Rs 2,35,000, recovering from the Rs 2,30,000 zone. Resistance is seen at Rs 2,39,000-2,40,000, followed by Rs 2,45,000-2,46,000, while support is placed at Rs 2,34,000-2,33,000 and Rs 2,30,000-2,29,000.
In the international market, US gold futures for December delivery rose about 1 per cent to $4,380 per ounce.
The buying in gold supported by a decline in crude oil prices which eased pressure on the US dollar and Treasury yields.
In addition, the Federal Reserve is widely expected to raise interest rates by 25 basis points, as per experts.
Moreover, geopolitical tensions also remained a key factor for bullion prices as the US-Iran conflict remains unresolved while reports of a Houthi drone being intercepted by Saudi Arabia and explosions on Iran’s Qeshm Island added to market uncertainty.
(IANS)
