Precious metal prices started the day significantly lower on India’s Multi Commodity Exchange due to surging oil prices, which raised inflation fears and expectations of prolonged high interest rates. Market participants also exercised caution due to unclear developments in stalled discussions between the US and Iran.
In local trading, May delivery silver futures on the MCX dropped by Rs 6,144, or 2.4%, reaching Rs 2,42,220 per kilogram. June delivery gold futures fell by Rs 938, or 0.7%, to Rs 1,51,719 per 10 grams. The prior session saw silver gain about 2%, or Rs 4,000, with gold remaining unchanged.
Higher oil prices contribute to inflation by elevating costs for transport and manufacturing, potentially leading to sustained elevated interest rates. While gold often serves as an inflation safeguard, higher rates diminish its attractiveness compared to interest-earning investments.
Internationally, spot gold prices decreased 0.7% to $4,705.09 per ounce by 0215 GMT, and US gold futures for June dropped 0.6% to $4,722.10. Spot silver declined 1.4% to $76.64 per ounce.
According to Manoj Kumar Jain from Prithvi Finmart, gold and silver are experiencing significant price fluctuations. He anticipates silver will maintain support at $64 per troy ounce, and gold should hold above $4,550 per troy ounce on a weekly close.
He noted that volatility in these metals is expected this week, influenced by changes in the dollar index, oil price shifts, and uncertainties in the US-Iran agreement.
For gold, daily support levels are between $4,720 and $4,681 per troy ounce, with resistance from $4,785 to $4,818. Silver support ranges from $76.00 to $74.00, and resistance is at $79.80 to $81.40 per troy ounce.
On the MCX, gold support is at Rs 1,51,500 to Rs 1,50,650, with resistance at Rs 1,53,650 to Rs 1,54,700. Silver support is between Rs 2,45,500 and Rs 2,42,000, and resistance at Rs 2,51,200 to Rs 2,54,800.
Jain recommended securing gains on current long holdings in gold and silver, and to consider new buys during price corrections.
Current rates for 22-carat standard gold are Rs 1,13,592 per 8 grams in Delhi, Rs 1,13,472 in Mumbai, Rs 1,13,992 in Chennai, and Rs 1,13,472 in Hyderabad. For 24-carat pure gold, prices are Rs 1,23,912 in Delhi, Rs 1,23,792 in Mumbai, Rs 1,24,360 in Chennai, and Rs 1,23,792 in Hyderabad.
Expert opinions and advice are independent and do not reflect those of the publication.
