Daijiworld Media Network - New Delhi

New Delhi, Oct 19: Gold and silver futures traded higher in early deals on Monday, tracking firm global cues and easing concerns over an imminent US Federal Reserve rate hike.

On the Multi Commodity Exchange (MCX), gold futures for December delivery were trading at Rs 1,48,379 per 10 grams, up Rs 461, or 0.31 per cent, from the previous close of Rs 1,47,918.

The yellow metal rose as much as 0.4 per cent, or Rs 581, to hit an intraday high of Rs 1,48,499. It recorded an intraday low of Rs 1,48,120, still up Rs 200, or 0.13 per cent.

Similarly, silver futures for December delivery were trading at Rs 2,12,013 per kg, up Rs 826, or 0.39 per cent, from the previous close of Rs 2,11,187.

The white metal touched an intraday high of Rs 2,12,750, gaining Rs 1,563, or 0.74 per cent, while its intraday low stood at Rs 2,11,634.

Earlier in the day, gold and silver contracts opened at Rs 1,48,397 per 10 grams and Rs 2,12,319 per kg, respectively.

According to commodity market experts, Friday’s session eased immediate concerns over a rate hike after remarks by US Federal Reserve Chair Kevin Warsh in Bangkok reduced the implied probability of an October rate increase to below 20 per cent.

However, hotter-than-expected inflation readings, including the sharpest monthly rise in producer prices in four-and-a-half years, have kept the possibility of a rate move in December alive. The Federal Open Market Committee’s (FOMC) October 27-28 meeting will be the next key test for the markets.

For MCX gold, immediate resistance is seen at Rs 1,48,600, followed by the Rs 1,50,000-Rs 1,50,700 range. On the downside, support is placed at Rs 1,48,000, followed by Rs 1,45,300-Rs 1,46,000 and Rs 1,43,000-Rs 1,43,700.

On the international front, COMEX gold opened steady near USD 4,185 and moved towards USD 4,200, gaining 0.50 per cent and edging back above that level. COMEX silver opened near USD 57.15 and moved towards USD 57.80, rising 0.89 per cent and outperforming gold.

Experts said a firmer rupee was reducing the benefit of the recovery in international prices for domestic bullion.

For MCX silver, immediate resistance is placed in the Rs 2,14,000-Rs 2,15,000 range, which capped gains on Friday, followed by Rs 2,19,000-Rs 2,20,000.

“Immediate support at Rs 2,07,000-Rs 2,08,000, with next support at Rs 2,00,000-Rs 2,02,000,” experts added.