Gold, silver futures price fall amid higher US bond yields, elevated crude oil prices

The prices of gold and silver declined in the domestic futures trade on Tuesday as the higher US bond yields and elevated crude oil prices amid USIran conflict flared inflation concerns weighing on the bullion marketOn the Multi Commodity Exchange MCX yellow metal contracts for December delivery traded lower by Rs 137 or 009 per cent at Rs 148760 per 10 grams For the October delivery gold futures were trading at 146640 down by Rs 16400 or 011 per centGold has fallen sharply dropping about 4 per cent in a single session to around USD 4070 an ounce its lowest since early August In the domestic market it is trading near Rs 145 lakh per 10 grams roughly 20 per cent below its January peak of about Rs 181 lakh The reason is not any weakness in demand for gold mdash it is interest rates Anindya Banerjee Head of Commodity and Currency Research Kotak Securities saidOil prices above USD 100 a barrel have pushed up inflation fears sending US bond yields to their highest since 2007 and markets now expect the US Federal Reserve to raise rates again in October When interest rates rise this sharply an asset like gold that pays no interest comes under pressure and a stronger dollar adds to that Banerjee addedGlobally West Texas Intermediate crude was trading at USD 9426 per barrel up 179 per cent Brent crude was higher by 199 per cent at USD 10737 per barrel in New York according to news agency PTISilver futures for December delivery declined 072 per cent or Rs 1641 to Rs 225801 per kgGlobally gold futures rose by 023 per cent to USD 412532 per ounce in New York according to PTIGold price has resumed on a flat note today trailing around the lowest level of past seven weeks on the concerns over interest rates hike speculations ahead of US economic data in this week Comex Gold spot has recovered from the support low of USD 4110 in past sessions and trading around USD 4140 an ounce Aamir Makda Commodity amp Currency Analyst Technical Research Choice Broking saidA firm US Dollar and rise in bond yields will continue to pressure gold prices with higher oil prices and Middle East tensions renewing inflations concerns Key support levels would be at 148380147950 respectively On the other side resistance would be at 149500 he addedValue buying opportunityAccording to Banerjee the decline in gold prices is a good opportunity for household investors to purchase the yellow metal at the onset of the festive seasonThe important point for buyers is that this is a correction driven by the rate cycle not a change in the longterm story Central banks around the world continue to buy gold as they reduce their dependence on the dollar and that structural demand has not gone anywhere Technically gold is now sitting at a major support mdash around USD 4070 on spot and Rs 145 lakh in the domestic market he saidAs long as these levels hold a rebound towards USD 4200ndash4250 is possible For longterm investors and for households looking ahead to the festive season this decline is an opportunity to buy in parts rather than all at once mdash because if these supports give way prices could slip further towards USD 3950 or around Rs 140 lakh domestically before finding a floor he addedGold rates on TuesdayAccording to the India Bullion and Jewellers Association the indicative retail selling rate for gold on Tuesday morning was as followsFine Gold 999Rs 14740 per gram22 karat gold Rs 14386 per gram20 karat gold Rs 13119 per gram18 karat gold Rs 11939 per gram14 karat gold Rs 9507 per gramWith inputs from PTI