Mumbai — Gold and silver prices fell sharply Tuesday as growing expectations of additional interest-rate increases by the U.S. Federal Reserve weighed on global investor sentiment.
On the Multi Commodity Exchange, August gold futures opened at 146,776 rupees per 10 grams, down 1,412 rupees, or 0.95%, from the previous close of 148,188 rupees.
At about noon, gold was trading at 146,379 rupees, a decline of 1,739 rupees, or 1.17%. The contract traded between 146,070 rupees and 147,090 rupees during the session.
July silver futures posted steeper losses. The contract opened at 227,676 rupees per kilogram, down 6,634 rupees, or 2.83%, from its previous close of 234,310 rupees.
Silver later traded at 227,119 rupees, down 7,191 rupees, or 3.07%. It touched an intraday low of 226,556 rupees and a high of 228,800 rupees.
Market analysts said gold remained under pressure despite attempts to stabilize above key support levels. Immediate support was seen between 145,600 rupees and 146,000 rupees, while resistance was placed between 148,000 rupees and 148,400 rupees.
A sustained move above that resistance range could strengthen momentum and push gold toward the 149,000-rupee to 150,000-rupee range, analysts said.
The near-term outlook for silver remained weak after the metal opened sharply lower. Analysts identified immediate resistance between 230,500 rupees and 231,600 rupees.
A decisive fall below the 228,000-rupee support level could push silver toward 226,000 rupees or 224,000 rupees, while a recovery above 230,000 rupees would be important for improving sentiment.
Analysts attributed the weakness in precious metals to a stronger U.S. dollar and expectations that the Federal Reserve could maintain a restrictive monetary policy to control inflation.
Investors are now awaiting U.S. employment and unemployment data due later this week, which could influence expectations for monetary policy and provide the next major direction for gold and silver prices.
In energy markets, international benchmark Brent crude fell 0.5% to $77.51 a barrel, while U.S. West Texas Intermediate crude declined 0.35% to $73.60 a barrel. (Source: IANS)
