Gold prices on the Multi Commodity Exchange (MCX) slipped below the Rs 1.44 lakh per 10 grams mark on Tuesday, extending losses for the second consecutive session. Meanwhile, silver witnessed a sharp decline of over Rs 4,000 per kilogram, tracking weak global cues and a stronger US dollar.
Gold and Silver Prices on MCX
On MCX, gold futures for August expiry were trading at Rs 1,43,950 per 10 grams, down by Rs 1,050 or 0.72% from the previous close. Silver futures for July expiry fell by Rs 4,200 to Rs 84,500 per kilogram, a decline of 4.7%.
According to market analysts, the fall was driven by profit-booking after recent highs and a firm US dollar index, which makes dollar-denominated commodities more expensive for holders of other currencies. Additionally, expectations of further interest rate hikes by the US Federal Reserve weighed on precious metals.
Key Levels to Watch
Analysts identified key support and resistance levels for gold and silver. For gold on MCX, the immediate support is at Rs 1,43,500, followed by Rs 1,42,800. Resistance is placed at Rs 1,44,800 and Rs 1,45,500. For silver, support is at Rs 83,800 and Rs 83,000, while resistance is at Rs 85,500 and Rs 86,200.
"Gold has breached the crucial support of Rs 1,44,000, and if it sustains below this level, further selling pressure could push prices towards Rs 1,42,500," said a commodity analyst at Motilal Oswal Financial Services.
City-Wise Gold Rates
In the domestic physical market, gold prices varied across major cities. In Delhi, 22-carat gold was quoted at Rs 1,33,800 per 10 grams, while 24-carat gold stood at Rs 1,43,500. In Mumbai, rates were similar at Rs 1,33,500 for 22-carat and Rs 1,43,200 for 24-carat. In Chennai, 22-carat gold was at Rs 1,34,200, and 24-carat at Rs 1,43,900. In Kolkata, prices were Rs 1,33,700 for 22-carat and Rs 1,43,400 for 24-carat.
The variation in prices is due to local taxes, transportation costs, and demand-supply dynamics in each city.
Global Market Impact
Internationally, spot gold was trading around $1,940 per ounce, down 0.8% on the day. Silver spot prices fell over 3% to $23.50 per ounce. The decline was attributed to a stronger US dollar, which gained against major currencies after hawkish comments from Federal Reserve officials.
"The precious metals market is under pressure from a rising dollar and bond yields. Investors are cautious ahead of key US economic data that could influence the Fed's policy stance," noted a report from ICICI Direct.
Outlook
Market participants are now awaiting US jobless claims and GDP data later this week for further direction. A sustained break below $1,930 per ounce for gold could trigger more selling, while silver may test $23 per ounce. On the domestic front, the rupee movement against the dollar will also impact MCX prices.
According to the India Bullion and Jewellers Association, physical demand remained subdued as buyers awaited further price correction. However, jewellers expect demand to pick up during the upcoming festive season.
