Gold and silver remained volatile throughout the session, erasing early gains to trade in negative territory amid uncertain geopolitical situations. MCX Gold, October 5 expiry, fell Rs 1,513 to a low of Rs 1,51,581 per 10 grams as compared to the last closing of Rs 1,53,094. Meanwhile, MCX Silver, due to expire on December 4, declined Rs 3,626 to a low of Rs 2,35,691 per kilogram from the last closing of Rs 2,39,317.
Earlier, the precious metals futures contracts were trading in green in the morning on the back of a decline in crude prices. MCX Gold touched an intraday high at Rs 1,53,497 per 10 grams, while MCX Silver peaked at Rs 2,40,529 per kilogram for the day.
At around 5:12 PM, MCX Gold was trading at Rs 1,52,149, down Rs 945 or 0.62 per cent. MCX Silver was quoted at Rs 2,37,832, down Rs 1,485 or 0.62 per cent.
Also Read: Gold Rate Today On MCX: Gold Slips Over Rs 1,300, Silver Down Rs 1,700; Check 24k, 22k Prices
What Drives Volatility In Gold Prices
According to an analyst, the early gains in gold prices were attributed to a sharp decline in crude prices, while a stronger dollar index put pressure.
"Gold witnessed volatile moves between Rs 1,51,850–Rs 1,53,350, as falling crude prices provided support while the Dollar Index moving above 100 kept bullion under pressure," Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
3 Factors To Drive Bullion Market Going Forward
According to Trivedi, three factors will primarily be the key drivers of momentum in the bullion market.
1- Trump's UN Speech
2- Xi Jinping's US Visit
3- Developments around the Strait of Hormuz between the US and Iran
"Going ahead, markets will closely watch Trump’s UN speech, Xi Jinping’s US visit and developments around the Strait of Hormuz, with the US-Iran situation remaining unresolved," Trivedi added.
According to the analyst, Gold is likely to remain volatile amid these geopolitical triggers.
"Gold range can be seen between Rs 1,51,000–Rs 1,54,500," Trivedi noted.
Disclaimer: This story is for informational purposes only. It should not be considered as investment advice. All the predictions and suggestions belong to the attributed analysts only.