Gold, silver open higher on lower crude prices and yields

Gold and silver futures opened higher on Wednesday, supported by softer crude oil prices, declining bond yields and a weaker dollar, before surrendering their gains as the session progressed.

October gold futures on the Multi Commodity Exchange opened Rs 320 higher at Rs 1,63,202 per 10 grams, compared with the previous close of Rs 1,62,882.

By around 12.15 pm, however, gold was trading 0.3 per cent lower at Rs 1,62,395 per 10 grams, a decline of Rs 487. The precious metal moved between an intraday high of Rs 1,63,202 and a low of Rs 1,62,286.

September silver futures began the session at Rs 2,45,583 per kg, gaining Rs 1,456 from their previous close of Rs 2,44,127.

Silver subsequently slipped to Rs 2,44,200 per kg, down Rs 73 or 0.03 per cent. It had earlier risen as much as 0.84 per cent to an intraday high of Rs 2,46,180.

Precious metals remained firmer in international trade. COMEX gold gained 0.11 per cent to trade at about $4,699 an ounce, while silver advanced 0.74 per cent to nearly $69 an ounce.

Market analysts said easing crude oil prices and lower bond yields had provided support to bullion, with weakness in the US dollar further improving the backdrop for precious metals.

Reports that Iran and Oman were discussing the reopening of the Strait of Hormuz and the removal of mines also eased concerns about possible disruptions to global oil supplies.

Brent crude declined to around $88 a barrel, extending its fall for a third consecutive session. The losses followed reports of talks between Iran and Oman on creating a temporary joint maritime corridor through the Strait of Hormuz.

Gold had recently climbed to its highest level in more than three months. Traders are now watching upcoming US inflation data for indications about the Federal Reserve’s future interest-rate decisions.

Analysts said MCX gold had traded largely between Rs 1,62,500 and Rs 1,63,400 in recent sessions. A sustained move above Rs 1,63,400 could take it towards Rs 1,63,900, while major support was seen near Rs 1,61,130, based on the 20-period exponential moving average on the four-hour chart.

For MCX silver, resistance was placed at Rs 2,48,800. A breakout above that level could strengthen the upward momentum and push the metal towards Rs 2,55,000, analysts said, forecasting a sideways-to-positive trend during Wednesday’s session.