New Delhi — Gold and silver prices traded sharply lower Wednesday amid concerns that higher global interest rates could weaken demand for precious metals.
Gold futures for August delivery opened on the Multi Commodity Exchange at Rs 145,000 per 10 grams, down Rs 1,528, or 1.04 percent, from the previous close of Rs 146,529.
At about 12:10 p.m., gold was trading at Rs 145,216, down Rs 1,313, or 0.9 percent. It touched an intraday low of Rs 144,114, a decline of 1.64 percent, and a high of Rs 145,480.
Silver futures for July delivery also remained under pressure, opening at Rs 222,579 per kilogram, down Rs 3,255, or 1.44 percent, from the previous close of Rs 225,834. Silver later fell as much as 1.84 percent to Rs 221,658.
Precious metals also weakened in international markets. Spot gold traded at $4,092.39 an ounce, down 0.4 percent, while silver fell 0.33 percent to $61.82 an ounce.
Commodity market analysts said gold faces immediate resistance between Rs 145,000 and Rs 146,000. A sustained move above that range could support a recovery toward Rs 147,000 and eventually Rs 148,000.
A decline below Rs 143,000, however, could intensify selling pressure and push gold toward the Rs 140,000 to Rs 139,000 range.
Silver faces immediate resistance between Rs 225,000 and Rs 226,000, analysts said. A break below Rs 220,000 could send prices toward Rs 215,000 or lower.
Analysts maintained a cautiously negative near-term outlook for both metals, citing persistent selling pressure and the need for prices to move above key resistance levels before momentum improves.
The dollar index, which measures the U.S. currency against six major currencies, rose to 101.265. (Source: IANS)
