Gold and Silver Prices Register Negative Returns for Second Consecutive Month

Precious metals lost their sheen last month as both gold and silver clocked negative returns for the second consecutive month. Market sentiment was dampened by rising crude oil prices, concerns over increasing inflation, and potential hikes in U.S. interest rates.

Comex gold closed 7.26% lower to settle at $3,884.9 per ounce by the end of October. Comex silver suffered a steeper decline of 19.1%, settling at $49.13 per ounce.

Domestic markets mirrored the global trend. MCX Gold fell 7.16% to settle at ₹1,38,419 per 10 grams, while MCX Silver recorded a sharp 20% drop to ₹1,78,900 per kilogram.

On October 30, Comex gold slid to a one-year low and closed well below the psychological $4,000 mark. The price breached the prior support zone at $3,900, indicating weakness that may push it toward the next support zone of $3,650 to $3,750. The price must clear the upper end of the range at $4,550 to invalidate the overall weak outlook.

Comex silver also faced downward pressure, dropping below the support level of $54. This breach led to a low of $48.9 on Friday. With a negative short-term trend, prices remain vulnerable to a slide toward the $42 to $43 range, and must surpass the $55 resistance level to reverse the negative outlook.

In the domestic market, MCX gold slipped below the crucial support level of ₹1,41,000, reaching a low of ₹1,38,249 on Friday. The short-term outlook points to a potential slide to the ₹1,30,000–₹1,32,000 range, with only a move over ₹1,48,000 invalidating this outlook.

MCX silver turned extremely bearish after breaching the support zone at ₹2,15,000, which pushed it below the psychological level of ₹2,00,000 per kilogram. The short-term outlook anticipates a further slide to ₹1,55,000–₹1,57,000, unless the price moves past ₹2,10,000.

Overall, the outlook for both gold and silver remains negative, with prices likely to drift lower until the specified resistance levels are breached.

"The recent downward trend in precious metals highlights how macroeconomic factors such as crude oil prices, inflation concerns, and interest rate expectations directly impact commodity valuations globally and locally. For businesses and investors tracking market cycles, these movements signal the importance of closely monitoring key support and resistance zones rather than relying on short-term sentiment. Volatility in commodities like gold and silver requires disciplined risk management and a careful evaluation of broader economic indicators." — Dr. Shishir Gupta, Founder & CEO, StartupLanes