Gold prices dip Rs 500/10 grams; silver falls Rs 2,400/kg as traders eye US Fed meet this week. What should you do?
AgenciesGold and silver prices fell on the MCX as a stronger US dollar weighed on bullion.
In the domestic market, MCX silver futures for December 2026 delivery were down by Rs 2,400 to Rs 1,93,555 per kg. Gold futures for December 2026 delivery fell by Rs 500 to Rs 1,42,581 per 10 grams.
Federal Reserve policymakers are widely expected to leave US short-term borrowing costs unchanged at this week's meeting. However, persistent inflation concerns have fuelled expectations that the pause in rate hikes may not last long. Investors are awaiting the Fed's policy decision on Wednesday and the Personal Consumption Expenditures (PCE) data due on Thursday. The PCE index is a key inflation measure monitored by the central bank as it targets a 2% inflation rate.
According to the CME FedWatch Tool, traders are pricing in an 11% chance of a rate hike this week and an 82% probability of an increase in December. Although gold is often considered a hedge against inflation, higher interest rates tend to weigh on demand for the non-yielding metal.
On the geopolitical front, senior officials from Saudi Arabia, Turkey and Pakistan met Iranian officials in Tehran on Monday in an effort to ease tensions in the Middle East.
Gold, silver international prices
Spot gold fell 0.1% to $4,013.70 per ounce by 0045 GMT, while US gold futures for December delivery declined 0.3% to $4,027.10. A stronger dollar makes gold, which is priced in the US currency, more expensive for buyers using other currencies.Spot silver rose 0.1% to $53.97 per ounce, platinum was steady at $1,527.81, while palladium fell 0.7% to $1,042.43.
How should you trade gold?
Manoj Kumar Jain of Prithvi Finmart says gold prices could hold its key support level of $3,940 per troy ounce and silver prices could also hold its support level of $51.80 per troy ounce on weekly closing basis.“We expect gold and silver prices to remain volatile this week amid volatility in the crude oil prices, volatility in the dollar index, FOMC meetings and geo-political tensions. Gold has support at $4000-3984 while resistance at $4055-4092 per troy ounce and silver has support at $53.50-52.80, while resistance is at $55.50-56.40 per troy ounce in today’s session,” he added.
At MCX, gold is having support at Rs 1,42,400-1,41,800 and resistance at Rs 1,43,650-1,44,200 while silver is having support at Rs 1,94,000-1,92,200 and resistance at Rs 1,97,200-Rs 1,99,600. “We suggest long-term investors can accumulate gold and silver in this market fall but traders must be cautious ahead of the FOMC meeting and US midterm elections,” Manoj said.