Precious Metals Suffer September Slump on Dollar Strength and Rate Hike Fears
Precious metals faced a challenging September, with both gold and silver posting negative returns. The strengthening of the U.S. Dollar and expectations of a U.S. interest rate hike weighed heavily on investor sentiment. Additionally, rising crude oil prices failed to offset these pressures. Comex gold ended the month 6.8% lower at $4,189.1 per ounce, while Comex silver dropped 9.6% to $60.75 per ounce.
Domestic markets mirrored the global downturn, though the weakening Indian Rupee against the U.S. Dollar somewhat cushioned the fall. MCX gold declined 4.1% to ₹1,149,092 per 10 grams, and MCX silver fell 6.8% to ₹2,23,740 per kilogram.
Analysts note that Comex gold breached its support zone of $4,200-$4,220, leading to a range-bound outlook with volatile price action expected between $3,900 and $4,550. Similarly, Comex silver dropped below $62.5, with prices likely to fluctuate between $54 and $69. Domestically, MCX gold is projected to oscillate between ₹1,41,000 and ₹1,59,000, while MCX silver may range from ₹2,15,000 to ₹2,48,000.
The short-term positive outlook for both metals has been invalidated, and prices are expected to remain range-bound until key levels are breached. Analysts caution against definitive trends until prices move decisively above or below the mentioned ranges.