Gold Rate Hit Fresh Daily Low, Silver Slips By 3%: US Dollar Gains Momentum

Gold rates in the global markets hit a fresh daily low at US$ 1672/oz, in the Comex, as the US Dollar index is gaining momentum again. December Gold futures drop by around 2% today. December silver futures fell above 3% at US$ 19.645. Meanwhile, the US Dollar index increased to 113 at the time of writing. Gold is a US dollar-dominated asset class, and any upside in the currency index pulls down gold prices.

Indian gold markets are also reflecting the same trend. Falling by around Rs. 250-270/10 grams in trade today, on October 10, the 22-carat gold price is quoted at Rs. 47600, and the 24-carat gold price is quoted at Rs. 51930 in the country. In Chennai 22-carat gold price stood at Rs. 48050. Additionally, in the Mumbai Commodity Exchange (MCX), gold in December future is quoted at Rs. 51037/10 grams, down by 1.78%, and silver in December futures is quoted at Rs. 59149/kg, down sharply by 2.69%

After the publication of the latest positive employment results in the US, gold and silver prices went under the bear zone again. Showing better-than-expected data, the US nonfarm payrolls gained by 263,000 jobs in September, according to the US Labour Department. Today, the 2-year Treasury bond yield increased to around 4.312%, and the 10-year U.S. Treasury yield increased to around 3.888%. At the same time, crude oil prices are struggling; Nymex crude oil prices fell around $92.00 a barrel. An aggressively tight monetary policy by the US Federal Reserve is affecting commodity prices globally, keeping the US Dollar and bond yields higher.

"Technically, the gold futures bears have the solid overall near-term technical advantage and gained fresh power on momentum today. Bulls' next upside price objective is to produce a close above solid resistance at the October high of $1,738.70. Bears' next near-term downside price objective is pushing futures prices below solid technical support at the September low of $1,622.20," analyst Jim Wyckoff told Kitco News.