Gold and Silver Prices Dip Again as Diwali Shopping Nears
With Diwali and Dhanteras approaching, the latest dip in gold and silver prices is offering a welcome opportunity for buyers. Both metals remained under pressure on Tuesday, continuing a downward trend that has persisted for several days across domestic and global markets.
On the MCX, gold saw a 0.43 per cent decline, dipping to Rs 1,42,216 per 10 grams at its lowest point during the day. Silver fell 2.1 per cent and touched an intraday low of Rs 1,91,516 per kilogram.
During trading, gold for December delivery was quoted at Rs 1,42,417 per 10 grams, lower by about Rs 656 or 0.46 per cent. Silver traded at Rs 1,91,985 per kilogram, down approximately Rs 3,808 or 1.94 per cent.
In overseas trade, COMEX gold declined 0.54 per cent to $4,016.60 an ounce, while silver dropped 2.73 per cent to $52.855 an ounce. Gold is hovering around the $4,000 level, which carries considerable psychological weight for investors.
Analysts link the decline to concerns over higher global interest rates, weak investment appetite and continued selling in international markets. Attention is now focused on the upcoming US Federal Reserve meeting and its guidance on interest rates.
Prices are well off their earlier highs. Gold had climbed to nearly Rs 1,93,000 per 10 grams on January 29 this year, and silver had reached a historic level of Rs 4,20,048 per kilogram. Today, gold is roughly Rs 50,784 per 10 grams below that peak, while silver is about Rs 2.28 lakh per kilogram cheaper.
Market experts expect demand from weddings and the festive season to lend some support to prices. However, uncertainty around global economic data and interest rates continues to cloud the outlook.
Chart watchers identify Rs 1,43,000 to Rs 1,43,700 per 10 grams as the key resistance band for MCX gold. A move and sustained trading above this range could signal renewed stability. The major support zone lies between Rs 1,40,000 and Rs 1,41,000.
In silver, Rs 2 lakh to Rs 2.02 lakh per kilogram is an important resistance area, while Rs 1.92 lakh to Rs 1.94 lakh is considered firm support. Technical indicators suggest that selling pressure is not yet fully over, and market participants are being advised to stay vigilant.