Gold and silver prices commenced the day on a positive note on the Multi Commodity Exchange on Thursday, following a significant decline in oil prices that bolstered expectations for the US Federal Reserve to maintain current interest rates. Furthermore, a declining dollar provided a boost to precious metals, as investors focused on the upcoming remarks from U.S. Federal Reserve Chair Kevin Warsh later this week. In the domestic market, silver futures for September 2026 delivery increased by Rs 3,400, reaching Rs 2,42,999 per kg. Gold futures for October 2026 delivery increased by Rs 1,285, reaching Rs 1,60,898 per 10 grams. International gold experienced an increase of over 5% last week following the announcement from the U.S. Treasury regarding an expansion in the purchases of older long-dated bonds. The action heightened apprehensions regarding the devaluation of the dollar and subsequently increased the demand for gold.

Investors are currently paying close attention to Warsh’s comments at the annual Jackson Hole symposium in Wyoming, seeking insights into the Federal Reserve’s policy trajectory. Markets are currently reflecting a 36.5% probability of a U.S. rate hike occurring in September, alongside a 72.7% likelihood of such an increase by December, as indicated by the CME FedWatch Tool. Data released on Wednesday indicated that annual U.S. inflation unexpectedly held steady in July, remaining significantly above the Fed’s 2% target for the 65th consecutive month. The halt in the downturn from a recent high, influenced by the Iran conflict, is expected to contribute to the central bank’s deliberations regarding the potential increase of interest rates or the decision to maintain the current levels. Gold is commonly regarded as a safeguard against geopolitical and economic uncertainties. However, elevated interest rates can render the non-yielding asset less appealing.

Oil prices declined on Thursday, continuing a streak of losses, as optimism regarding the potential reopening of the crucial Strait of Hormuz increased amid diplomatic initiatives involving Iran and Qatar. A reopening could alleviate apprehensions regarding supply disruptions stemming from the conflict in the Middle East. Spot gold increased by 0.8% to $4,630.09 per ounce, whereas U.S. gold futures advanced by 0.7% to $4,685.50. Among other precious metals, spot silver increased by 1.7% to $69.28, platinum experienced a rise of 1.1% to $1,848.57, and palladium saw an uptick of 0.5% to $1,334.49. Manoj Kumar Jain indicated that gold has support levels ranging from $4,610 to $4,574 per troy ounce, with resistance anticipated between $4,694 and $4,720. For silver, support is at 67.10-66.00 per troy ounce, while resistance is placed at 68.80-70.00.

On the MCX, gold exhibits support levels at Rs 1,58,800-1,57,700 and resistance levels at Rs 1,60,600-1,61,500. Silver exhibits support levels between Rs 2,37,000 and Rs 2,34,400, with resistance identified in the range of Rs 2,42,000 to Rs 2,44,500. Jain advised traders to refrain from engaging in the market until there is definitive information from the government regarding the speculation surrounding a duty reduction. However, he stated that long-term investors may consider accumulating gold and silver in a staggered approach during market declines.