Gold and silver prices in India opened sharply lower on the Multi Commodity Exchange (MCX) on Friday, following a weak trend in the global bullion prices, as expectations of higher interest rates and strong dollar weighed on the precious metal prices.
MCX gold rate for August futures contracts opened lower by ₹2,134, or 1.43%, at ₹1,47,175 per 10 grams as against its previous close of ₹1,49,309 level. MCX silver price for July futures contracts opened lower by ₹5,201, or 2.19%, at ₹2,32,371 per kg as compared to its previous close of ₹2,37,572 level.
At 9:10 AM, MCX gold price was trading at ₹1,47,196 per 10 grams, down by ₹2,113, or 1.42%. MCX silver rate crashed by ₹6,798, or 2.86%, to ₹2,30,774 per kg.
In the international market, gold prices fell and were on track for a third consecutive weekly decline, weighed down by a stronger dollar and hawkish signals from the US Federal Reserve.
Spot gold price fell 0.6% to $4,184.33 per ounce. The contract was down 0.9% so far this week. US gold futures for August delivery fell 1% to $4,202.10. Spot silver fell 1.5% to $64.83 per ounce
The dollar hovered around a one-year high, making greenback-priced bullion more expensive for other currency holders.
The US Fed kept its interest rate unchanged on Wednesday, but nine of the US central bank’s 19 policymakers now believe they will need to raise the policy rate this year.
Traders now see an 87% chance of a US Fed rate hike in December, jumping from 61% prior to the Fed decision, according to the CME FedWatch Tool.
Gold tends to lose appeal when rates are high, as it does not yield interest.
Meanwhile, Goldman Sachs cut its gold price forecast for December to $4,900 per ounce from $5,400 earlier, as the bank doesn’t expect a Fed rate cut this year anymore.
On the geopolitical front, crude oil prices fell, easing inflationary concerns as oil tankers sailed through the Strait of Hormuz and the US said it lifted its blockade on Iran on Thursday.
Gold Rate Outlook
Jigar Trivedi, Senior Research Analyst at IndusInd Securities said that the outlook for MCX gold rate today remains weak.
“MCX gold price may find support at ₹1,45,500 per 10 grams level, while resistance is placed at ₹1,48,000 level. The outlook remains weak,” said Trivedi.
Silver Price Outlook
According to Trivedi, the outlook for MCX silver price today also remains weak, with support seen at ₹2,27,000 level and resistance at ₹2,35,000 level.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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