The decision of Japan, the world’s fourth largest economy, has created a stir in the bullion market. Due to which there has been a big fall in the prices of gold and silver from New York to New Delhi. According to the information, Bank of Japan has increased the policy rate by 0.25 percent. Due to which the country’s policy rates have reached a high of almost 30 years. Due to which there is pressure in the prices of gold and silver. On the other hand, due to low US inflation, pressure is being seen in the prices of gold and silver. This is the reason why both gold and silver are seen trading under pressure in the futures market of India. If experts are to be believed, there may be fluctuations in both gold and silver in the coming days. Let us also tell you at what level gold and silver are trading in the futures market of the country.
Price of gold and silver in futures market
There is a decline in the prices of gold and silver on the country’s futures market Multi Commodity Exchange. If we look at the data, gold is trading with a fall of Rs 747 at 9.45 am, while the price is seen at Rs 1,33,774. Whereas during the trading session, gold fell by Rs 846 and reached the day’s lower level of Rs 1,33,675. By the way, this morning gold had closed at Rs 1,34,021. Whereas on Thursday, gold had closed at Rs 1,34,082 in the futures market.
On the other hand, a decline is also being seen in the prices of silver on MCX. At 9.50 am, silver is trading at Rs 2,03,145 with a fall of Rs 420. Whereas during the trading session a fall of Rs 909 was seen and the price reached Rs 2,02,656.
Why did gold and silver fall?
The Bank of Japan (BOJ) has increased its policy rate to 0.75 percent, which is the highest level since September 1995. Although this move was expected, it is likely to impact traders investing in the yen. Gold prices also declined in the international market due to America’s lower than expected inflation data, while the rise in the dollar index also pulled down the gold prices.
The dollar index rose 0.10 per cent and neared a one-week high, impacting gold demand. Meanwhile, US consumer prices rose less than expected in the year to November. According to Reuters report, US consumer prices increased by 2.7 percent year-on-year, which was less than the 3.1 percent increase estimated in a survey of economists conducted by the news agency.
Jigar Trivedi, research analyst at Reliance Securities, said gold was trading near its record high for October and was poised to rise for the second consecutive week as lower-than-expected US inflation boosted expectations of further interest rate cuts. Trivedi said geopolitical tensions also supported the metal, as the US halted oil supplies to embargoed Venezuela after a tanker was seized and President Putin reaffirmed his territorial claims in Ukraine.
experts’ guess
Trivedi believes that MCX Gold February futures are likely to be in the range of Rs 1,34,000 to Rs 1,35,000 for 10 grams. Rahul Kalantri, Commodity Vice President, Mehta Equities said that gold is getting support at $ 4,275 and $ 4,245, while resistance levels are at $ 4,355 and $ 4,385. Silver is getting support at $64.40 and $63.75, while the resistance level is at $65.60 and $66.15. Kalantri said that in rupee terms, gold is getting support at Rs 1,33,850 and Rs 1,33,110, while resistance is at Rs 1,35,350 and Rs 1,35,970. Silver is getting support at Rs 2,02,450 and Rs 2,00,280, while resistance is at Rs 2,05,810 and Rs 2,07,270.