Gold and Silver Prices Hit 7-Month Lows Amidst Dollar Strength

Gold and Silver Prices Hit 7-Month Lows Amidst Dollar Strength

VoM News Desk | October 3, 2023 | 11:43 AM IST | Breaking News | Follow on Google News

Gold and Silver Prices Hit 7-Month Lows Amidst Dollar Strength

Gold and Silver Prices Hit 7-Month Lows Amidst Dollar Strength

In a concerning turn of events, both domestic and international gold rates have further decreased, reaching their lowest point in seven months. Here’s what you need to know:

Gold’s Decline Continues

The gold future contract for December 2023 on the Multi Commodity Exchange (MCX) started the day with a lower opening at ₹57,426 per 10 grams and quickly plummeted to an intraday low of ₹56,565. As it stands, the current gold price on MCX is ₹56,734 per 10 grams, marking a substantial 1.50 percent drop from its Friday closing price of ₹57,600. Simultaneously, the international gold market is quoting prices around $1,815 per ounce, suffering a 0.35 percent intraday loss compared to its Monday closing rate.

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Silver Faces a Similar Fate

Silver rates today faced a similar fate, opening lower at ₹69,255 per kilogram on the MCX and dropping to an intraday low of ₹65,666 within minutes of the commodity market’s opening bell. Currently, the silver price on MCX stands at approximately ₹67,210 per kilogram, a significant 3.79 percent decrease from its Friday closing rate of ₹69,857. The precious white metal witnessed a 3.90 percent drop today.

Dollar Strength Behind the Decline

The sudden and sharp correction in gold and silver prices is attributed to the strengthening of the US dollar. Anuj Gupta, Head of Commodity & Currency at HDFC Securities, explained, “As the US government managed to avert a shutdown on October 1, 2023, the US dollar has gained further strength. The US dollar index today reached an 11-month high, causing gold and silver prices in both domestic and international markets to plummet to a 7-month low.” Gupta emphasized that the pressure on silver and gold prices primarily stems from the US dollar’s ascent to this 11-month high.

The Outlook for Precious Metals

According to Deveya Gaglani, Research Analyst at Axis Securities, rising bond yields and a robust dollar index have negatively impacted precious metals sentiment. The near-term trend appears unfavorable for their prices.

Investors should keep an eye on key support levels. In the international market, gold prices have immediate support at $1,800 per ounce and crucial support at $1,770 per ounce. On MCX, gold prices have immediate support at ₹56,000 and crucial support at ₹55,300 per 10 grams. Meanwhile, silver rates are in the range of $20 to $21.50 per ounce, with support levels of ₹65,500 and ₹63,000 per kilogram on MCX.

VoM News Desk

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