Precious metals suffer steep losses in September

Precious metals experienced a significant downturn in September, with both gold and silver posting negative returns. The decline was driven by a strengthening U.S. Dollar and anticipation of interest rate hikes in the U.S., which dampened investor sentiment. Rising crude oil prices also failed to offset the negative impact, pushing Comex gold down 6.8% to $4,189.1 per ounce, while Comex silver dropped 9.6% to $60.75 per ounce.

Domestically, the Indian Rupee's weakness against the U.S. Dollar somewhat cushioned the fall in precious metal prices. MCX gold fell 4.1% to ₹1,149,092 per 10 grams, and MCX silver declined 6.8% to ₹2,23,740 per kilogram. The short-term outlook for both metals has been invalidated, with prices expected to remain range-bound and volatile until key support or resistance levels are breached.

Comex gold breached its support zone of $4,200, $4,220, leading to a range-bound outlook between $3,900 and $4,550. Similarly, Comex silver dropped below $62.5, with prices likely to oscillate between $54 and $69. In the domestic market, MCX gold is expected to trade within ₹1,41,000, ₹1,59,000, while MCX silver may fluctuate between ₹2,15,000 and ₹2,48,000.

The overall sentiment for both gold and silver has turned bearish in the short term, with no clear trend emerging until the specified levels are broken. Analysts caution that the lack of a definitive trend may lead to volatile price movements in the near future.