Gold prices rise Rs 700/10 gram; silver gains Rs 1,500/kg ahead of US Fed meet. Key levels to track today
AgenciesIn the domestic market, MCX silver futures for December 2026 delivery were up by Rs 1,500 to Rs 1,97,186 per kg. Gold futures for December 2026 delivery rose by Rs 700 to Rs 1,42,700 per 10 grams.
Oil prices slipped on Monday after climbing to near six-month highs late last week, although continued attacks on Saudi Arabia kept concerns over supply disruptions alive. Meanwhile, Qatari mediators were in Tehran on Sunday to help ease regional tensions in coordination with the United States, an official briefed on the situation told Reuters.
Investors are awaiting the Fed's policy meeting scheduled for October 27-28, with the decision due on October 28. The US Personal Consumption Expenditures (PCE) inflation data, a key measure monitored by the central bank as it targets 2% inflation, is scheduled for release the following day.
Markets largely expect the Fed to keep interest rates unchanged this week, while traders are pricing in a 75% probability of a rate hike in December, according to CME's FedWatch Tool.
Although gold is traditionally viewed as a hedge against inflation, higher interest rates tend to reduce the appeal of the non-yielding metal.
Gold, silver international prices
Spot gold rose 0.4% to $4,009.87 per ounce by 0342 GMT, recovering from its lowest level since mid-July in the previous session. Bullion fell 4% last week, marking its steepest weekly decline since June. US gold futures for December delivery also gained 0.4% to $4,023.50 per ounce.Among other precious metals, spot silver rose 0.6% to $54.19 per ounce, platinum was steady at $1,551.31, and palladium gained 0.6% to $1,050.50.
How should you trade gold?
Manoj Kumar Jain of Prithvi Finmart expects gold and silver prices to remain volatile this week amid fluctuations in crude oil prices and the dollar index, geopolitical tensions and the upcoming FOMC meeting.For gold, support is seen at $3,980-3,940 per troy ounce, while resistance is pegged at $4,034-4,072. Silver has support at $52.80-51.80 per troy ounce and resistance at $55.00-56.40.
On the MCX, gold has support at Rs 1,40,850-1,40,000 and resistance at Rs 1,42,700-1,43,650. Silver's support levels are at Rs 1,94,000-1,91,400, while resistance is seen at Rs 1,97,700-1,99,600.
Jain advised long-term investors to accumulate gold and silver gradually through a systematic investment plan (SIP) during the current market decline. However, he cautioned traders to remain careful ahead of the FOMC meeting.