Gold Prices Below Rs 1,39,000; Silver Jumps By Rs 3,300, But Still Under Rs 1,83,000

Gold and silver prices rebound on the Multi Commodity Exchange on Monday, Nov. 2, after witnessing heavy selling pressure last week. Having said that, the yellow metal is still trading below the Rs 1,39,000 level today, touching a low of Rs 1,38,350, while silver rebounded stronger than gold, gaining more than 1.63% or close to Rs 3,300, as investors tracked movements in crude oil prices, the US dollar, and expectations of further Federal Reserve rate hikes.

As of 02:14 p.m., MCX gold futures for December delivery were trading at Rs 1,38,658 per 10 grams, up Rs 173, or 0.12%, from the previous close of Rs 1,38,485.

MCX silver futures for December delivery gained Rs 2,922, or 1.63%, to Rs 1,82,054 per kg, against the previous close of Rs 1,79,132.

Why Are Gold And Silver Prices Rising Today?

Recovery in domestic bullion prices comes after a sharp correction in international markets. Spot gold rebounded 0.7% to $3,900.90 an ounce on Monday after falling 3.5% on Friday to a one-year low. Spot silver also recovered 1.8% to $49.97 an ounce.

Precious metal prices surge as oil prices declined following reports of renewed talks in Doha aimed at ending the US-Israeli war on Iran. Lower crude oil prices could ease inflation concerns and reduce pressure on the Federal Reserve to maintain higher interest rates.

However, expectations of further monetary tightening continue to weigh on bullion. As per Reuters, markets were pricing in a 73% probability of a US rate hike in December. Higher interest rates generally reduce the appeal of gold and silver, which do not generate interest income.

Technical Outlook

Kaveri More, Commodity Technical Analyst at Choice Broking, said MCX gold prices had declined around 3% to 4% over the past week, with the recent low at Rs 1,38,249. She said festive-season demand and softer crude oil prices could offer near-term support. However, the outlook would depend on movements in the dollar, crude oil prices, and expectations surrounding the Federal Reserve's interest-rate policy.

For silver, More highlighted the Gold-Silver ratio of around 78:1, against a recent high of 79.4, indicating silver's sharper correction compared with gold. She also pointed to subdued physical demand from India and China, cautious central bank buying, and liquidity-driven selling as factors weighing on sentiment.

Ponmudi R, CEO of Enrich Money, said gold's immediate resistance was at Rs 1,40,000-1,41,000, while support was placed at Rs 1,37,500-1,38,300. A sustained move above the resistance zone would be needed to stabilise the price structure.

For silver, he identified immediate resistance at Rs 1,86,000-1,88,000 and support at Rs 1,78,000-1,80,000. He cautioned that the rebound from oversold levels does not, by itself, confirm a trend reversal.