Gold Futures Rise, Silver Futures Fall in Domestic and Global Markets

Gold Futures Gain While Silver Prices Decline in Mixed Commodity Market

Investors are witnessing a divergence in the performance of gold and silver futures, with gold prices climbing while silver experiences a downturn.

Gold Prices on the Rise

On Wednesday, gold futures opened positively, with the benchmark December contract on the MCX starting ₹181 higher at ₹1,48,631 per 10 grams, compared to the previous close of ₹1,48,450. As trading progressed, the contract saw a slight increase, reaching ₹1,48,480. Earlier this year, gold prices peaked at ₹1,80,779 per 10 grams, reflecting significant volatility in the market.

In the global arena, gold futures on Comex opened at $4,184.20 per ounce, up from the previous close of $4,177.30. At the time of writing, gold was trading at $4,187.80 per ounce, marking a gain of $10.50. This upward movement comes amid a backdrop of fluctuating demand and geopolitical uncertainties affecting investor sentiment.

Silver Futures Decline

In contrast, silver futures opened lower on the MCX, with the December contract starting ₹216 down at ₹2,19,001 per kg, compared to the previous close of ₹2,19,217. As trading continued, silver was seen at ₹2,18,991, reflecting a decline of ₹226. Earlier this year, silver prices had reached a high of ₹4,20,048 per kg, indicating a significant drop from those levels.

On the global front, Comex silver futures opened at $59.41 per ounce, slightly down from the previous close of $59.52. At the time of writing, silver was trading at $59.49 per ounce, down by $0.03. The decline in silver prices can be attributed to a combination of profit-taking and a shift in market sentiment.

Market Sentiment and Technical Indicators

Ajay Kedia, director of Kedia Advisory, noted that selling pressure is building in gold as open interest rose by 2.83% to 17,548 contracts, indicating a strengthening bearish sentiment. Key support levels for gold are at ₹1,47,820 and ₹1,47,190, while resistance is observed at ₹1,49,535. A breach above this resistance could potentially lead prices towards ₹1,50,620.

Similarly, silver is facing fresh selling pressure, with open interest increasing by 8.74% to 19,291 contracts. Support for silver is seen at ₹2,17,460 and ₹2,15,695, while resistance is at ₹2,22,280. If silver can maintain levels above this resistance, it may rise towards ₹2,25,335; however, continued selling could push prices lower.

Key Highlights

• Gold futures on MCX opened at ₹1,48,631 per 10 grams, up ₹181 from the previous close.
• Silver futures on MCX opened at ₹2,19,001 per kg, down ₹216 from the previous close.
• Gold prices peaked earlier this year at ₹1,80,779 per 10 grams.
• Silver prices reached a high of ₹4,20,048 per kg earlier this year.
• Open interest in gold rose by 2.83%, indicating bearish sentiment.
• Open interest in silver increased by 8.74%, suggesting fresh short positions.

Investor Note: The divergence in gold and silver prices highlights the ongoing volatility in the commodities market. Investors should closely monitor technical indicators and market sentiment to make informed decisions regarding their investments in these precious metals.