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Precious metals lost their sheen in September with both gold and silver clocking negative returns last month. The strengthening of the U.S. Dollar and the expectations of interest rate hike in the U.S. dented the sentiment towards precious metals.
The firming up of the crude oil prices did not help the cause either.
As a result, Comex gold closed 6.8% lower to settle at $4,189.1 per ounce by the end of September. Comex silver suffered a relatively steeper cut of 9.6% to settle at $60.75/ounce.
Mirroring the global trend, precious metal prices settled at lower levels in the domestic markets too. The fall in the domestic market was, however, smothered by the weakening of the Indian Rupee against the U.S. Dollar.
MCX gold fell 4.1% in September to settle at ₹1,149,092/10 grams. MCX silver closed at ₹2,23,740/kilogram, representing a 6.8% fall last month.
Gold weaker
Contrary to expectations, Comex gold price remained weak last month and also breached the support zone of $4,200-$4,220 mentioned last month. As a result, the short-term outlook has been invalidated, and the price is likely to remain range bound and witness volatile price action in the $3,900-$4,550 range.
A definitive trend in Comex gold will emerge only if the price manages to breakout either above $4,560 or below $3,900. Expect lacklustre and range-bound price action to persist until either of the levels are taken out.
Similar to gold, Comex silver price, too, remained weak last month and also dropped below the support level of $62.5. The short-term uptrend has now been invalidated and price is likely to remain stuck in the broad range of $54 to $69 on the higher side. The price action is likely to be volatile and devoid of any meaningful trend until either of these levels are broken.
MCX gold price too drifted lower last month and breached the support level of ₹1,48,000. This has negated the positive outlook, and the price is now expected to oscillate in the ₹1,41,000-₹1,59,000 zone. Expect a yo-yo kind of price action within this zone to persist in the near future.
Similar to gold, the positive outlook for MCX silver price, too, has now been invalidated as the price dropped below the erstwhile support level of ₹2,25,000. Expect domestic silver price to remain range bound in the ₹2,15,000-₹2,48,000 range in the near term.
Conclusion
To summarise, the erstwhile positive short-term outlook for both gold and silver have been invalidated. Precious metal prices are likely to remain range bound until the levels mentioned above are not breached.
(The author is a Chennai based analyst / trader. The views and opinion featured in this column is based on the analysis of short-term price movement in gold and silver futures at COMEX & Multi Commodity Exchange of India. This is not meant to be a trading or investment advice.)
Published – October 05, 2026 06:51 am IST