Gold and Silver Prices Fluctuate Amid Market Caution
Market Overview
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Mumbai, Sep 10: In the early hours of trading on Thursday, gold and silver prices exhibited a mixed performance as traders remained cautious ahead of the upcoming US inflation report and the Federal Reserve's policy announcement.
Gold Futures Performance
On the Multi Commodity Exchange (MCX), gold futures for October started at Rs 1,53,581, reflecting a slight decline of 0.11 percent or Rs 182.
By 11 am, the price of gold surged by 0.31 percent or Rs 489, reaching an intraday peak of Rs 1,54,252. At the latest update, it was trading at Rs 154,177, marking an increase of 0.27 percent or Rs 414.
Silver Futures Update
Conversely, silver futures for December were trading at an intraday high of Rs 2,44,265, up by 0.02 percent or Rs 52. However, the white metal saw a decline of 0.60 percent or Rs 1,487, hitting a low of Rs 2,42,726.
Market Analysis
Experts noted that gold on the MCX was trading relatively flat, remaining below its 20-day exponential moving average and immediate resistance levels.
Immediate resistance for gold is identified between Rs 1,54,000 and Rs 1,54,700, with a sustained breakout potentially pushing prices towards Rs 1,56,300 to Rs 1,57,000. Support levels are seen at Rs 1,50,700 to Rs 1,50,000, and a drop below the 100-day EMA could lead prices down to Rs 1,48,000.
“The market sentiment remains cautious below Rs 1,54,000,” an analyst commented, adding that a decline below Rs 1,52,000 could prompt a pullback towards Rs 1,50,700.
Silver Market Insights
MCX silver was trading around Rs 2,43,000, down 0.52 percent, while still above key near-term moving averages. Resistance levels are noted at Rs 2,45,000 to Rs 2,46,000, followed by Rs 2,49,000 to Rs 2,50,000. Support is positioned at Rs 2,42,000 to Rs 2,41,000, and then at Rs 2,37,000 to Rs 2,36,000.
Analysts indicated that silver's short-term outlook remains cautious, with a potential drop below Rs 2,42,000 leading to further declines.
Awaiting Economic Data
Market participants are closely monitoring the US producer price index data set to be released later on Thursday, along with consumer inflation data expected on Friday, for insights into the Federal Reserve's interest rate plans.
Many analysts anticipate that the US central bank will maintain its current policy during the meeting scheduled for September 15-16.
International Market Trends
Meanwhile, international gold prices have increased due to a weaker dollar, with COMEX gold trading at $1,472.60, up 0.27 percent. In contrast, COMEX silver was trading at $17.44, down 0.29 percent.
Additionally, crude oil prices have risen, with Brent crude surpassing the $90-a-barrel mark amid ongoing tensions in the Middle East. Brent crude increased by 0.68 percent to $91.90 a barrel, while US West Texas Intermediate crude rose by 1.81 percent to $87.79 a barrel.