Gold, Silver Prices Rise 1% As Crude Oil Prices Ease

Gold and silver prices traded higher on Wednesday, with precious metals gaining up to almost 1% in early trade. The increase was supported by easing crude oil prices and bond yields.

On the Multi Commodity Exchange (MCX), gold futures for October opened at Rs 1,63,202 per 10 grams, up Rs 320 from its previous close of Rs 1,62,882. However, at around 12:15 pm, the yellow metal was trading at Rs 1,62,395 per 10 grams, down Rs 487 or 0.3% from its opening price.

Gold prices jumped as much as 0.19% or Rs 320 to hit an intraday high of Rs 1,63,202, while recording an intraday low of Rs 1,62,286, a decrease of 0.36% or Rs 596.

Meanwhile, silver futures for September opened at Rs 2,45,583 per kg, up Rs 1,456 from its previous close of Rs 2,44,127. At the last count, the white metal was seen at Rs 2,44,200 per kg, down Rs 73 or 0.03%. It touched an intraday high of Rs 2,46,180, an increase of 0.84% or Rs 2,053.

In international markets, COMEX gold was up 0.11% at around $4,699 an ounce, while COMEX silver gained 0.74% to trade near $69 an ounce.

According to market experts, the easing crude oil prices and lower bond yields have supported gold and silver prices. A weaker dollar has also provided a positive backdrop for the precious metals. Moreover, reports that Oman and Iran are discussing reopening the Strait of Hormuz and removing mines have eased concerns over disruptions to oil supplies.

Commodity experts believe that gold has resumed trading on a steady note after rising to a more than three-month high in recent sessions. Traders are now focusing on US inflation data for cues on the Federal Reserve's interest rate path.

MCX Gold has been trading in the Rs 1,62,500-1,63,400 range in recent sessions. A breakout above Rs 1,63,400 could potentially open the way towards Rs 1,63,900. On the downside, major support for gold is seen around Rs 1,61,130, based on the 20-EMA on the four-hour chart.

For MCX silver, resistance is seen at Rs 2,48,800, with a breakout potentially accelerating the bullish momentum towards Rs 2,55,000. The analysts expect the white metal to remain sideways to bullish during Wednesday's session.

Brent crude slipped to around $88 a barrel, extending losses for a third consecutive session. This followed reports of discussions between Iran and Oman on establishing a temporary joint maritime corridor in the Strait of Hormuz.

The increase in gold and silver prices is significant for investors and traders, as it indicates a potential shift in market sentiment. The easing of crude oil prices and bond yields has provided a boost to the precious metals, and traders will be closely watching the US inflation data for further cues.

In conclusion, the rise in gold and silver prices on Wednesday was supported by easing crude oil prices and bond yields. The precious metals are expected to remain steady, with traders focusing on US inflation data for further cues.