Mumbai, Oct 5: Gold prices declined on Monday, while silver moved higher on the domestic commodity market as investors assessed currency movements, geopolitical developments and the broader global economic outlook.
On the Multi Commodity Exchange (MCX), December gold futures were trading at Rs 1,49,184 per 10 grams, down Rs 1,206, or 0.8 per cent, from the previous close around 10 a.m. During the session, gold touched a low of Rs 1,48,850 after falling as much as 1.02 per cent. It had earlier reached an intraday high of Rs 1,51,197.
Silver showed greater resilience. December silver futures climbed to an intraday high of Rs 2,26,999 per kg, gaining around 0.49 per cent. The contract was later trading at Rs 2,26,340 per kg, up Rs 463, or 0.2 per cent.
The contrasting movement highlights a shift in investor preference within the precious-metals segment, with silver currently showing stronger momentum than gold.
Gold Faces Key Technical Levels
Market analysts said the fall below the psychologically important Rs 1.50 lakh level has made the mark an immediate resistance zone.
Gold could face resistance in the Rs 1,51,000-Rs 1,51,600 range, followed by the Rs 1,52,500-Rs 1,53,000 zone. On the downside, support is seen around Rs 1,48,000-Rs 1,47,300, with stronger support near Rs 1,46,000-Rs 1,45,300.
Technical indicators are also pointing towards a cautious near-term outlook. Analysts noted that gold’s Relative Strength Index remains around 43, while the Moving Average Convergence Divergence indicator is in negative territory.
A sustained recovery above Rs 1.50 lakh could help improve market sentiment, while a decisive break below Rs 1.48 lakh could increase selling pressure and take prices towards the Rs 1.46 lakh level.
Silver Continues to Outperform
Silver, meanwhile, is maintaining its stronger position and remains above the Rs 2.24 lakh support zone.
Analysts have identified immediate resistance around Rs 2.27 lakh-Rs 2.28 lakh, followed by Rs 2.31 lakh-Rs 2.32 lakh. A sustained move above Rs 2.28 lakh could strengthen the recovery, while a fall below Rs 2.24 lakh may expose the metal to the Rs 2.20 lakh level.
The stronger performance of silver is also being reflected in international markets, where the metal has recently outpaced gold.
Geopolitics Remains a Major Market Driver
Global geopolitical developments continue to influence bullion prices as investors look for safe-haven assets during periods of uncertainty.
Recent developments involving the United States and Iran have added another layer of uncertainty to financial markets. Comments from US President Donald Trump about the possibility of either further military action or negotiations with Tehran have kept geopolitical risks in focus.
For bullion investors, movements in the US dollar, global interest-rate expectations and geopolitical developments are likely to remain key factors in determining the direction of gold and silver prices in the near term.
The current divergence between the two metals highlights the importance of tracking individual price trends rather than treating the precious-metals market as a single asset class.
