Gold futures on the Multi Commodity Exchange (MCX) fell sharply on Wednesday, declining by Rs 159 to settle at Rs 71,982 per 10 grams, driven by weak global trends and a strengthening US dollar. The October 5 contract witnessed a drop of Rs 159, or 0.22 per cent, from the previous close of Rs 72,141 per 10 grams.
Market Performance
The precious metal opened on a weak note and remained under pressure throughout the day, mirroring losses in international markets. Analysts attributed the fall to a firmer dollar index, which made gold less attractive for holders of other currencies. Additionally, expectations of further interest rate hikes by the US Federal Reserve weighed on sentiment.
Silver Also Declines
In tandem with gold, silver futures also traded lower. The September 5 contract on MCX fell by Rs 1,567, or 1.92 per cent, to Rs 80,000 per kg. Silver prices have been volatile recently, influenced by industrial demand and global economic uncertainty.
Global Cues
Internationally, spot gold was trading around $1,920 per ounce, down from previous levels. The stronger dollar and rising bond yields continued to pressure bullion prices. Market participants are now eyeing key US economic data releases, including inflation figures and jobless claims, for further direction.
Outlook
Analysts suggest that gold prices may remain range-bound in the short term, with support at Rs 71,500 and resistance at Rs 72,500 per 10 grams on MCX. A break below support could trigger further selling, while a recovery above resistance may attract buying interest. Investors are advised to monitor global macroeconomic developments and central bank policies for trading cues.
