MCX gold prices rise Rs 600/10 grams; silver jumps Rs 3,000/kg ahead of Diwali, but rate hike bets linger. What should you do?
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ETMarkets.comGold and silver futures traded higher on the MCX ahead of Diwali.
In the domestic market, MCX silver futures for December 2026 delivery were up by Rs 2,800 to Rs 1,81,925 per kg. Gold futures for December 2026 delivery rose by Rs 613 to Rs 1,39,098 per 10 grams.
Three Federal Reserve officials on Friday called for further interest rate increases to tackle elevated inflation. Their comments marked the first round of public statements by central bank officials following last week's monetary policy meeting, at which short-term borrowing costs were left unchanged.
US inflation data showed that consumer prices accelerated in September as households paid more for gasoline and other goods. The figures reinforced economists' expectations of a Fed rate hike in December. According to the CME FedWatch Tool, traders are currently pricing in a 75% probability of an interest rate increase in December.
Higher interest rates increase the opportunity cost of holding non-yielding assets such as gold, making the metal less attractive to investors.
Meanwhile, Iranian negotiators were in Doha on Sunday for a third consecutive day of discussions with Qatari mediators, seeking an agreement to end the US-Israeli war on Iran, an official briefed on the talks told Reuters.
In Europe, inflation is expected to remain considerably higher this year and next than previously forecast, potentially returning to the European Central Bank's 2% target only in 2028, according to the bank's Survey of Professional Forecasters released on Friday.
Gold, silver international prices
Spot gold rose 0.5% to $3,894.89 per ounce but continued to hover near its lowest level since October 2025, touched in the previous session. US gold futures for December delivery gained 0.1% to $3,903.90 per ounce. Gold fell to its lowest level since October 2025 on Friday, slipping below the key $4,000-per-ounce mark.Among other precious metals, spot silver rose 1.2% to $49.6935 per ounce, platinum gained 0.8% to $1,446.05, while palladium advanced 1.1% to $986.76.
How should you trade gold?
Manoj Kumar Jain of Prithvi Finmart said gold and silver prices are likely to remain volatile this week amid fluctuations in crude oil prices and the dollar index, along with ongoing geopolitical tensions.Gold has support at $3,880-3,800 per troy ounce and resistance at $3,940-4,000 per troy ounce in today's session. Silver has support at $48.00-46.60 per troy ounce, while resistance is placed at $50.00-51.40 per troy ounce.
On the MCX, gold has support at Rs 1,36,600-1,35,000 and resistance at Rs 1,40,000-1,41,400. Silver has support at Rs 1,76,600-1,74,000 and resistance at Rs 1,81,000-1,84,000.
Jain advised investors and traders to avoid short-selling in deeply oversold markets. He said investors could accumulate gold and silver through systematic investment plans (SIPs) during the current decline, while traders should remain cautious ahead of the US midterm elections.