Gold and Silver Prices Fluctuate Amid Market Uncertainty
Market Overview
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Mumbai, Oct 5: On Monday, gold and silver exhibited contrasting trends as gold prices dipped by 1 percent, while silver experienced a rise, influenced by fluctuations in the US dollar and ongoing geopolitical tensions.
As of around 10 am on the Multi Commodity Exchange, gold futures for December delivery were priced at Rs 1,49,184 per 10 grams, reflecting a decline of Rs 1,206 or 0.8 percent from the previous day's close.
The price of gold fell to an intraday low of Rs 1,48,850, marking a decrease of 1.02 percent or Rs 1,540. Conversely, it reached a high of Rs 1,51,197, which is an increase of 0.53 percent or Rs 807.
In contrast, silver futures for December delivery surged by 0.49 percent or Rs 1,122, reaching an intraday high of Rs 2,26,999 on the commodity exchange.
Currently, silver is trading at Rs 226,340 per kg, up by Rs 463 or 0.2 percent from the previous close.
Gold and silver opened the day at Rs 1,51,197 and Rs 2,25,900, respectively.
Commodity analysts noted that gold's drop below Rs 150,000 has established this level as a significant resistance point, with further resistance anticipated at Rs 151,000-151,600 and Rs 152,500-153,000.
On the downside, support levels for gold are identified at Rs 148,000-147,300, followed by Rs 146,000-145,300.
The technical outlook for gold appears cautious, with the Relative Strength Index at 43 and the Moving Average Convergence Divergence indicator showing negative signals. Analysts suggest that a consistent move above Rs 150,000 is essential for stabilization, while a drop below Rs 148,000 could lead to a decline towards Rs 146,000.
Meanwhile, silver is outperforming gold, maintaining its position above the Rs 224,000 support level. Analysts predict immediate resistance at Rs 227,000-228,000, followed by Rs 231,000-232,000.
A sustained increase above Rs 228,000 could bolster silver's recovery, while a fall below Rs 224,000 might push it down towards Rs 220,000.
This divergence in domestic pricing reflects trends in international markets, where silver has been performing better than gold.
Additionally, geopolitical events continue to play a crucial role in influencing bullion markets. Recently, US President Donald Trump indicated that the country faces a decision between escalating military actions against Iran or pursuing a diplomatic agreement with Tehran.