Business/Alive News: Gold and silver prices extended their decline on October 30 as persistent inflation concerns and expectations of tighter US monetary policy weighed on investor sentiment. Gold futures slipped below the crucial $4,000-per-ounce level in international markets, while silver prices moved closer to the $50 mark.
On the Multi Commodity Exchange (MCX), December gold futures fell 0.57% to Rs 1,41,790 per 10 grams. Silver futures declined 1.96% to Rs 1,85,735 per kg. Internationally, December gold futures dropped 0.76% to $4,000 per ounce, while silver prices fell 2.13% to $51 per ounce.
Sugandha Sachdeva, founder of SS WealthStreet, attributed the decline to persistent inflationary pressures and expectations that US interest rates could remain elevated for longer. The Federal Reserve has maintained its cautious stance on inflation, keeping the possibility of another rate hike in December open.
US personal consumption expenditures (PCE) inflation rose to 3.6% in September from 3.4% in the previous month, while core PCE inflation increased to 3.1% from 3%. Meanwhile, the US economy grew by 3.4% in the third quarter, exceeding market expectations of 3.2%. Strong growth and rising inflation have reduced the appeal of non-yielding assets such as gold and silver.
Tensions between the US and Iran, along with elevated crude oil prices, have added to inflation concerns, further pressuring precious metals.
Sachdeva identified international gold support at $3,950-$3,970 and silver support at $48. On MCX, gold support lies at Rs 1,41,500, while silver has support at Rs 1,80,000.
Investors will closely monitor crude oil prices, US inflation data, Federal Reserve signals and geopolitical developments for cues on the next direction of precious metals.
