Gold, silver prices: 3 factors to watch for the next upmove

Gold and silver prices are struggling to regain momentum as an ease in geopolitical tensions and a stronger dollar is weighing on the precious metals counters. Uncertainty over the US Federal Reserve’s interest-rate outlook is also limiting the upside, leaving investors watching crucial support and resistance levels.

As of 9:30 am on October 21, MCX gold futures for December delivery were trading at ₹1,46,506 per 10 grams, while silver futures stood at ₹2,10,722 per kilogram. Internationally, gold was trading near $4,142 per ounce and silver around $58 per ounce.

Why Are Gold And Silver Prices Under Pressure?

According to Sugandha Sachdeva, founder of SS WealthStreet, elevated crude oil prices and geopolitical uncertainty are weighing on precious metals.

Higher crude oil prices can fuel inflation, potentially making it harder for the US Federal Reserve to cut interest rates. Higher interest rates can reduce gold’s appeal because the metal does not offer interest income. A stronger US dollar can also make dollar-denominated gold more expensive for buyers using other currencies, adding to price pressure.

Silver faces an additional challenge from concerns about industrial demand. Although the metal has long-term applications in solar energy, electric vehicles and electronics, uncertainty over global economic growth can weigh on demand expectations.

Gold Price Outlook: Key Support And Resistance

Internationally, $4,100 per ounce is a crucial support level for gold. A decisive closing break below this mark could intensify selling pressure, while resistance lies between $4,220 and $4,240.

On MCX, ₹1,45,500 per 10 grams is the key support level. On the upside, ₹1,51,500 is a major hurdle for the domestic gold market.

Silver Price Outlook: Will The Fall Continue?

For international silver, $55 per ounce is the crucial support. A decisive break below it could open the way towards $52 and potentially below $50. On MCX, ₹2,08,000 per kilogram is the key support, while resistance stands at ₹2,14,000, followed by ₹2,22,000.

The near-term outlook remains cautious. However, these levels are technical markers, not guaranteed price targets. Crude oil movements, dollar strength and upcoming central bank decisions could influence the next move in both metals.