India's Gold and Silver Prices Slip Amid Rate Hike Signals
The prices of gold and silver futures in India have corrected due to potential interest rate hikes in September, as suggested by US Federal Reserve Chair Kevin Warsh. His hawkish comments at the Jackson Hole symposium increased investor expectations of tighter monetary policy in the US.
Gold and silver often see reduced demand when interest rates rise and the US Dollar strengthens, which has led to a pullback in the Indian commodity markets. The prices had reached multi-month highs recently, prompting some profit-booking from traders.
The immediate focus for investors and traders is on technical support zones that could determine the next price movement. For gold, the critical technical floor lies between ₹1,53,000 and ₹1,55,000, which aligns with the 21-day moving average.
Similar to gold, silver faces a similar technical setup, with its recent highs struggling to maintain support near the ₹2,34,000 to ₹2,40,000 level. Analysts suggest that a failure to hold this support could invite more volatility.