Gold Price Jumps ₹586 on Bargain Buying; Silver Gains ₹245

Gold and Silver Prices Surge Amid Bargain Buying

Investors seize the opportunity as gold and silver prices rebound after recent declines.

Recent Price Movements

On October 8, gold prices rose by ₹586, reaching ₹1,49,689 per 10 grams on the Multi Commodity Exchange (MCX). This increase comes after a series of declines, with the previous close at ₹1,49,103. At the time of writing, gold futures were trading at ₹1,49,620, reflecting a gain of ₹517.

Silver also saw a notable increase, with prices climbing ₹245 to open at ₹2,23,806 per kg. The previous close was ₹2,23,561, and the contract was trading at ₹2,23,891 at the time of writing, up ₹330. Earlier this year, silver futures had peaked at ₹4,20,048 per kg.

Global Market Dynamics

In the global market, gold futures on Comex were trading near $4,157.20 per ounce, reflecting an increase of $16.50 from the previous close of $4,140.70. Silver futures were also up, trading at $60.37 per ounce, a slight increase from $60.29. Earlier this year, gold prices had reached a high of $5,586.20 per ounce, while silver peaked at $121.79 per ounce.

Technical Analysis and Market Sentiment

Despite the recent gains, analysts are cautious. Ajay Kedia, director of Kedia Advisory, noted that gold is facing fresh selling pressure, with open interest rising by 3.23% to 16,701 contracts. This indicates the creation of new bearish positions. Support for gold is identified at ₹1,48,035, with a potential decline below this level leading to prices around ₹1,46,965. Conversely, resistance is seen at ₹1,50,055, where a decisive move could push prices towards ₹1,51,005.

Silver is also under pressure, with open interest increasing by 6.83% to 17,728 contracts. Support for silver is at ₹2,21,220, and a fall below this could lead to prices around ₹2,18,880. On the upside, resistance is seen at ₹2,26,055, with a breakout potentially leading to a recovery towards ₹2,28,550.

Key Highlights

• Gold prices rose by ₹586 to ₹1,49,689 per 10 grams on MCX.
• Silver prices increased by ₹245 to ₹2,23,806 per kg.
• Global gold futures traded at $4,157.20 per ounce, while silver was at $60.37 per ounce.
• Technical indicators suggest potential bearish pressure on both metals.
• Support levels for gold and silver are at ₹1,48,035 and ₹2,21,220, respectively.

Investor Note: The recent rebound in gold and silver prices may provide short-term trading opportunities for investors. However, the underlying bearish sentiment and potential for further declines should be closely monitored, especially in light of ongoing macroeconomic pressures.