Gold at Rs 1,43,073, silver at Rs 1,95,846 in morning report

Gold stood at Rs 1,43,073 and silver at Rs 1,95,846 in the BusinessLine morning report for Tuesday, 27 October, which was updated at 7 am. The metal was up Rs 1,049 from the level shown in the report, while silver was up Rs 127. The same report put the Sensex at 73,606.75, up 482.92 points, the Nifty at 22,753.20, up 153.20 points, and crude oil at Rs 9,706, down Rs 94.

Those morning levels were reference levels at the start of the day, not closing prices for Tuesday. The distinction matters, because both metals eased after the open. By 9.27 am, MCX gold futures traded at Rs 1,42,831 per 10 grams, down Rs 242 from the previous close, after touching a low of Rs 1,42,581. MCX silver futures traded at Rs 1,94,644 per kilogram at the same time, down Rs 1,149, after an early low of Rs 1,93,555 per kilogram.

The morning report figures and the early trade figures come from different snapshots of the same market. The morning report gave the levels carried into Tuesday, while the early trade data showed where futures moved once trading began. Readers who compare the two sets need to keep the timing straight: Rs 1,43,073 for gold and Rs 1,95,846 for silver were the morning report levels, and the lower figures later in the morning were intraday moves.

Gold price eases as dollar firms

Spot prices told a similar story. Reports on Tuesday put the Delhi gold price for 24-karat spot metal at Rs 1,43,020 per 10 grams, while spot silver of 999 fineness stood at Rs 1,95,720 per kilogram. Those spot levels sat close to the morning report figures, even as futures eased, which shows the gap that can open between spot and futures prices during a morning session.

Global prices also eased. Spot metal traded near 4,000 dollars an ounce on Tuesday as the United States Federal Reserve policy meeting began, with traders waiting for the decision on interest rates. A stronger dollar weighed on the metal, because it does not pay interest, so higher rate expectations make dollar assets more attractive by comparison.

Jateen Trivedi, vice president for research on commodity and currency at LKP Securities, said the COMEX gold price range could be seen between 3,950 dollars and 4,100 dollars ahead of the policy outcome, after which the next trend would depend on the Fed decision and commentary. United States third-quarter GDP and PCE inflation data, due on Thursday, were also expected to shape expectations for December rates.

Silver price follows gold lower in early trade

Silver followed the metal lower in early trade, with a larger percentage fall in futures. The silver price in futures fell Rs 2,238 per kilogram from the previous close of Rs 1,95,793 to an early low of Rs 1,93,555, before recovering to Rs 1,94,644 by 9.27 am. The morning report level of Rs 1,95,846 sits close to that previous close, with the small difference reflecting different data snapshots used in the two reports.

Precious metals traders watched crude oil as well. United States Strategic Petroleum Reserve inventories have fallen to their lowest level since October 1982, while attacks on Saudi infrastructure kept supply disruption concerns in the market. High oil prices feed inflation worries, which in turn affect rate expectations and, through rates, the appeal of gold and silver.

For precious metals buyers in India, the day began with the metal at Rs 1,43,073 and silver at Rs 1,95,846 in the morning report, then saw futures ease to Rs 1,42,831 for gold and Rs 1,94,644 for silver by 9.27 am. The rupee traded at 95.22 against the dollar in early trade, which also affects the rupee cost of imported metals. The Fed decision, due on Wednesday, remained the main event for the rest of the week, with the metal near 4,000 dollars an ounce and silver tracking it lower in early trade.