Gold and Silver Prices Today: Gold slips on MCX, silver rises over 1%; find out from experts what strategy to adopt now..

Gold and Silver Prices Today: Fluctuations in gold and silver prices continue. On Monday, October 5, gold faced slight pressure on the MCX, while silver prices rose by more than 1%. A strong US dollar and high bond yields exerted pressure on gold, whereas silver followed strong global trends.

On the MCX, gold for December delivery fell by ₹340 to settle at ₹1.50 lakh per 10 grams. In the previous short week (due to holidays), gold had declined by ₹2,887—or approximately 2%—closing at ₹1.5 lakh per 10 grams.

Silver for December delivery rose by ₹2,188 (or 0.54%) to ₹2.28 lakh per kilogram. In international markets, silver futures gained 1.58%, reaching $61.31 per ounce.

Kaveri More, a commodity technical analyst at Choice Broking, noted that the dollar index remains near an 18-month high of 102.37, while elevated US Treasury yields are limiting gold's recovery.

"Gold prices remain in a consolidation phase as the strong US dollar and high bond yields curb upward momentum," More said.

Ashish Rajodiya, Head of Commodities at PL Capital, stated that gold is caught between two factors: weak US economic data (which has dampened expectations of a Federal Reserve interest rate hike in October) and the impact of a strong dollar and high Treasury yields. They expect gold to trade within a specific range, with support at ₹1.45 lakh per 10 grams and resistance at ₹1.51 lakh per 10 grams. They noted that the Federal Reserve's October policy decision would be the next major trigger.

In global markets, COMEX gold futures for December delivery in New York traded slightly higher at $4,163.50 per ounce. Akshat Siddhant, Lead Quant Analyst at Mudrex, stated that after briefly crossing $4,200 per ounce on Friday (October 2), the gold price is now holding above $4,150 per ounce. This has been supported by the US jobs report, which came in weaker than expected.

However, Siddhant noted that investors are still factoring in a roughly 70% probability of an interest rate hike in December.

Manav Modi, a commodities analyst at Motilal Oswal Financial Services, said that gold's recovery has been limited by elevated US Treasury yields. Amidst concerns over inflation, fiscal pressures, and heavy government borrowing, the 10-year yield remains around 5.2%.

Meanwhile, according to Darshan Desai, CEO of Aspekt Bullion & Refinery, demand for physical gold in India at current prices remains steady but is confined to select locations. He noted that while customers and jewelers might adjust the timing of their purchases, the festive and wedding seasons could provide support to demand.

Bullion prices may remain volatile this week as investors keep a close watch on US interest rate expectations, the dollar, bond yields, and geopolitical developments. Signals may also emerge from the services PMI data of major economies, US trade figures, and consumer sentiment data due later this week.

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