Gold, Silver Prices Fall Up To 2%: Is It The Right Time To Buy?

On Tuesday, amid the softness in global markets, gold and silver prices continued to drop for a second straight session, falling by as much as 2%.

Gold futures (August 5) opened slightly lower on the Multi Commodity Exchange (MCX) at Rs 1,46,566 per 10 grams, down 0.23 per cent or Rs 351, following the previous close of Rs 1,46,917.

The yellow metal dropped by Rs 1,255, or 0.85 per cent, to Rs 1,45,662 at around 12 PM as selling pressure increased. It reached an intraday low of Rs 1,45,351, down 1 per cent, or Rs 1,566 through the session so far, while the day’s high was Rs 1,46,566.

On September 4, silver futures continued to be under pressure, falling as much as 2.24 per cent, or Rs 5,296, to reach an intraday low of Rs 2,30,803 per kilogram.

The white metal started at Rs 2,34,100, down Rs 1,999, or 0.84 per cent, from the previous close of Rs 2,36,099. It was trading at Rs 2,32,549 at the time of the latest count, down Rs 3,550, or 1.50%.

The decline was also indicated on global markets. While silver dropped 1.46 per cent to $61.41 per ounce, COMEX gold fell 0.63 per cent to $4,141 per ounce.

Market Outlook

Gold’s near-term outlook remains mildly negative, according to market experts.

The experts stated that, to increase momentum, MCX gold must recover the Rs 1,46,000 level and hold above the Rs 1,46,500- 1,47,000 resistance zone. A move above these levels could push prices towards ₹1,48,000.

A breach is likely to push prices towards Rs 1,44,000-1,43,500.

The Rs 1,45,500-Rs 1,45,000 range offers immediate support.

Analysts said silver’s short-term outlook is now weak after prices fell below Rs 2,34,000.

A break below Rs 2,32,000 could trigger further losses, while holding above Rs 2,35,000-Rs 2,36,000 could spark a rebound towards Rs 2,38,000-Rs 2,39,000, experts added.

Crude oil prices climbed, with Brent rising nearly 1% to $72.77 per barrel and WTI rising 1.12% to $69.32 per barrel, still below $70.