Mumbai — Gold and silver prices declined on Monday as a strengthening U.S. dollar and weak global sentiment pressured precious metals in the domestic futures market. At the Multi Commodity Exchange (MCX), gold December futures fell 0.21 percent to Rs 1,23,300 per 10 grams in early trade, while silver December contracts slipped 0.38 percent to Rs 1,55,424 per kilogram.
Analysts noted that gold has near-term support at $4,035 to $4,000 per ounce, with resistance at $4,115 to $4,140. Silver’s support is seen at $50.30 to $49.85, with resistance at $51.25 to $51.50. In the Indian market, gold is supported at Rs 1,22,950 to Rs 1,22,380, while facing resistance between Rs 1,24,950 and Rs 1,25,500. Silver’s domestic support lies in the Rs 1,53,850 to Rs 1,52,500 range, with resistance at Rs 1,56,740 and Rs 1,57,880.
The dollar index rose by 0.14 percent on Monday, making gold more expensive for international buyers and weighing on demand. As gold is priced in dollars, a stronger currency often leads to a decline in metal prices.
Market participants are now awaiting key U.S. economic data expected later this week, including the delayed nonfarm payrolls report for September, which is scheduled for release on Thursday. The report is expected to provide insights into the U.S. labor market and could influence expectations around the Federal Reserve’s interest rate decisions in December.
Last week, gold and silver saw volatility, falling from their highs after hawkish comments from Federal Reserve officials dampened sentiment. The delayed release of economic data due to the recent U.S. government shutdown has added to the uncertainty.
“Expectations of a rate cut in December have dropped to 46 percent after the Fed’s signals,” analysts said. “Despite near-term volatility, both gold and silver remain on track for their strongest annual performance in decades.”
Robust central bank purchases and ongoing geopolitical and fiscal uncertainties continue to underpin bullish sentiment toward precious metals, according to market experts. (Source: IANS)
