Gold and silver prices remained under pressure on Tuesday, September 29, with both precious metals declining amid elevated US bond yields and continued uncertainty surrounding the US-Iran standoff. Higher energy prices and expectations of further interest rate increases also weighed on bullion sentiment.
On the Multi Commodity Exchange (MCX), December gold futures were trading at Rs 1,48,410 per 10 grams, down Rs 487 or 0.33 per cent.
Gold had slipped as much as 0.50 per cent, or Rs 747, during the session to touch an intraday low of Rs 1,48,150 by 10:34 am. The contract had earlier reached an intraday high of Rs 1,49,034, representing a gain of Rs 137 or 0.09 per cent.
Silver also witnessed selling pressure. December silver futures declined as much as 1.29 per cent, or Rs 2,942, to reach an intraday low of Rs 2,24,500 per kg.
At the latest count, silver was trading at Rs 2,25,338 per kg, down Rs 2,104 or 0.93 per cent. The metal had touched an intraday high of Rs 2,26,359, where it was still lower by Rs 1,083 or 0.47 per cent.
Why Are Gold and Silver Prices Falling?
The weakness in precious metals comes amid continued uncertainty between the US and Iran over the Strait of Hormuz, which has kept energy prices elevated. Gold also remained close to a seven-week low after suffering a sharp decline in the previous session.
The ongoing standoff has added pressure to oil prices, while higher US yields have made non-yielding assets such as gold and silver less attractive. Rising yields and a stronger dollar have also contributed to the recent weakness in bullion markets.
Iranian officials have reportedly expressed private concerns about the possibility of reaching an agreement with Washington to end hostilities before the US midterm elections in November. The uncertainty increased after US President Donald Trump rejected Iran’s latest proposal to reopen the strategically important waterway within seven days.
Gold Price Outlook: Support and Resistance Levels
According to commodity experts, gold faces immediate resistance in the Rs 1,50,000-1,50,700 range. The next resistance zone is placed at Rs 1,52,000-1,52,600.
On the downside, support is seen around Rs 1,48,000-1,47,300, followed by a stronger support zone at Rs 1,46,000-1,45,300.
The near-term outlook remains cautious. A sustained move above Rs 1,50,000 could indicate signs of recovery, while a decisive fall below Rs 1,48,000 may increase the possibility of another decline.
Silver Price Outlook: Key Levels to Watch
Silver opened with a gap-down near Rs 2,26,000 and remained below the Rs 2,27,000-2,28,000 range. The zone has now turned into resistance following the metal’s sharp fall on Monday.
Immediate resistance for silver is placed at Rs 2,27,000-2,28,000, followed by Rs 2,32,000-2,33,000.
On the downside, support is located at Rs 2,24,000-2,23,000, with the next support zone at Rs 2,20,000-2,19,000.
The short-term trend for silver remains cautious to negative. A sustained move above Rs 2,28,000 could help stabilise the market setup, while a decisive break below Rs 2,24,000 could expose silver to levels around Rs 2,20,000.
Disclaimer: Gold and silver prices can change rapidly during market hours. The prices, support and resistance levels mentioned in this article are based on the market information and expert views available at the time of writing. They are provided for informational purposes only and should not be considered investment advice. Readers should verify the latest rates and consult a qualified financial adviser before making investment decisions.