Silver, gold rates resume losing run, drop over 2%

Gold and silver prices experienced a notable decline of over 2% in early trading, as investors awaited critical U.S. inflation data. The precious metals market is currently navigating uncertainty, with traders closely monitoring inflation figures that could influence the Federal Reserve’s monetary policy direction.

Gold prices dropped below key resistance levels, with analysts pointing to support at $1,338–$1,320 per ounce and resistance around $1,370–$1,385. In the Indian market, MCX gold futures reflected similar trends, trading between support levels of ₹99,900–₹99,475 and resistance at ₹1,00,650–₹1,01,100. Silver mirrored gold’s decline, with global benchmarks showing support at $37.55–$37.35 and resistance between $38.10–$38.30. MCX silver futures traded within support of ₹1,12,700–₹1,12,000 and resistance of ₹1,14,000–₹1,14,650.

Market experts indicate that the recent correction is partly driven by profit booking and a cautious stance ahead of U.S. inflation data, which is expected to shed light on potential interest rate adjustments. A stronger-than-expected inflation report could bolster the case for higher rates, impacting gold and silver demand. Conversely, muted inflation could revive buying interest in safe-haven assets.

Analysts emphasize that while short-term volatility is likely, the medium-to-long-term outlook for both metals remains positive amid persistent inflationary pressures and geopolitical uncertainties. Investors are advised to track global cues, including the U.S. consumer price index, to gauge potential market movements.

Overall, gold and silver markets are poised for continued fluctuations, with technical levels serving as critical benchmarks for traders navigating a complex economic environment. The metals remain a preferred hedge against inflation, and their performance in the coming days will largely depend on economic data and central bank actions worldwide.

This cautious sentiment underscores the interconnectedness of global markets and the influence of U.S. monetary policy on commodity prices.