Precious metals face selling pressure as rising global bond yields and a strengthening dollar weigh on investor sentiment. Gold futures on the Multi Commodity Exchange dipped to ₹1,48,818 per 10 gram, while silver futures dropped to ₹2,25,321 per kg, mirroring declines in the international Comex market.
Market Sentiment Shifts
Precious metals are struggling to maintain momentum as global macroeconomic indicators tighten. The persistent climb in bond yields, coupled with a robust dollar, has redirected capital away from non-yielding assets like bullion. This dynamic is further exacerbated by elevated crude oil prices, which keep inflation expectations high and suggest the Federal Reserve may maintain a restrictive monetary policy stance for a longer duration than anticipated.
Domestic Trading Dynamics
On the Multi Commodity Exchange, the benchmark December gold contract is showing consistent weakness. Market participants are closely monitoring the support levels; analysts at Kedia Advisory identify ₹1,47,570 as a critical floor. A failure to hold this support could precipitate a further decline toward the ₹1,46,245 mark. Conversely, should the asset find strength, it faces immediate resistance at ₹1,50,610. The silver market exhibits similar patterns, with open interest rising by over 10 percent alongside price drops. This influx in open interest signals that traders are actively building positions during the current downturn, reflecting high market volatility and conviction in the prevailing trend. Support for silver is currently situated at ₹2,24,730, with resistance levels capped at ₹2,31,230.
Global Influences
International markets are mirroring this bearish trend. Comex gold futures have struggled to stabilize, trading below the $4,170 per ounce threshold, while silver has slipped toward the $61 level. The interplay between US interest rate trajectories and commodity pricing remains the primary driver for these assets. As long as yields remain elevated, the upward path for gold and silver will likely be constrained by technical resistance and macroeconomic headwinds.