Rise continues in gold and silver prices, 0.50% jump in early trade

Mumbai (The Uttam Hindu): Gold and silver prices continued to rise on Wednesday, extending the upward trend seen this week. In early trade, both precious metals gained about 0.50%. Strong demand in the spot market and growing expectations of a US Federal Reserve interest rate cut helped push prices higher, following Tuesday’s gain of over 1%.

On MCX, gold’s December futures were trading at ₹1,25,835 per 10 grams after climbing 0.50%. Silver’s December futures rose 0.91% to ₹1,57,750 per kilogram.

Analysts said gold has support at ₹1,24,350–₹1,23,580 per 10 grams, while resistance is placed at ₹1,25,850–₹1,26,500. For silver, support lies at ₹1,54,850–₹1,53,600 per kilogram, with resistance at ₹1,57,110–₹1,58,000.

Fresh US economic data weakened the dollar and strengthened expectations of an interest rate cut next month, pushing global gold prices to a nearly two-week high. The US dollar index slipped to around 99.60, its lowest in a week, making gold more attractive for international buyers. Meanwhile, the benchmark 10-year US Treasury yield hovered near its lowest level in a month.

Recent economic indicators from the US added to the positive sentiment. Retail sales rose only 0.2% in September, compared to 0.6% in August. The latest Producer Price Index increased by 0.3%, in line with expectations.