Gold and silver prices today: Yellow metal traded near its weakest levels in more than a month

Gold opened on the Multi Commodity Exchange (MCX) on Wednesday at Rs 58,895 per 10 grams and hit an intraday low of Rs 58,843. In the international market, prices hovered around $1,903.35 per troy ounce. Meanwhile, silver opened at Rs 71,500 per kg and hit an intraday low of Rs 71,260 on the MCX, and hovered around $22.90 per troy ounce in the international market.

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, said that gold prices sharply corrected yesterday by 1.59 per cent and closed at 58432 levels on the back of strength in the dollar index. The dollar index traded at a 10-month high level at 105.90 levels, putting pressure on gold as demand shifts from gold to dollar. "Gold may trade between $1890 to $1910 levels and on the MCX it may trade between 58200 to 58700 levels. It may test $1895 to $1890 levels as dollar index is trading higher due to hawkish statement given by the Fed," said Gupta.

Gold prices traded near their weakest levels in more than a month, beaten down by an assurgent US dollar as markets made adjustments to a rising interest rate scenario.

Manav Modi analyst commodity and currency Motilal Oswal Financial services, said, "U.S. 10-year yields remain firm at 16-year highs, the dollar index is also hovering around the 10-month high, weighing on the safe haven assets."

The Federal Reserve Bank of Chicago’s president said inflation staying above the US Fed’s 2% target remains a greater risk than tight central bank policy slowing the economy. Modi said, "There is a 40% chance that the Fed will need to raise interest rates “meaningfully” to beat inflation, Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday."

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The U.S. consumer confidence dropped to a four-month low in September, weighed down by persistent worries about higher prices and rising fears of a recession. However, households remained generally upbeat about the labour market.

"The US Senate took a step forward on a bipartisan bill meant to stop the government from shutting down in just five days, while the House sought to push ahead with a conflicting measure backed only by Republicans. China’s gold imports via Hong Kong rebounded in August from the previous month, data showed on Tuesday, with the issuance of fresh quotas to local banks likely to boost shipments into the world’s top gold consumer. Focus today will remain on the US Core durable goods orders data, said Modi.

Amit Khare, Associate Vice President at GCL Broking, said, "October Gold closed at 58432(-0.44%) and December Silver closed at 71777(-0.52%), Bullions daily charts are trading at demand zone looking good from here, Momentum Indicator RSI also indicating the same, So traders are advised to make fresh buy positions in Gold and Silver near given support level one with the stop loss of support level two and book near given resistance levels: Gold October Support 58300/58100 and Resistance 58700/58800. Silver December Support 71000/70400 and Resistance 72000/72500."