Gold and silver prices exhibited a mixed performance on the Multi Commodity Exchange on Tuesday, as investors remained poised for the US Federal Reserve’s policy decision, seeking insights into the prospective trajectory of monetary policy in the context of rising geopolitical tensions. In the domestic market, MCX silver futures for September 2026 delivery experienced a decline of Rs 1,011, settling at Rs 2,31,679 per kg. Gold futures for October 2026 delivery remained stable, increasing by Rs 20 to reach Rs 1,52,608 per 10 grams. Over the course of two days, the price of silver on the MCX has experienced a decline exceeding Rs 3,000. The US central bank is set to announce its policy decision on Wednesday following the conclusion of a two-day meeting. Financial markets are largely anticipating that Federal Reserve policymakers will increase the benchmark interest rate by 25 basis points, bringing it to a range of 3.75%-4.00%.

Gold is frequently regarded as a safeguard against inflation and geopolitical uncertainties; however, elevated interest rates typically diminish its attractiveness by raising the opportunity cost associated with holding non-yielding bullion. Data released on Friday indicated that US consumer prices experienced an acceleration in August, with a significant measure of underlying inflation marking its largest increase in four months. On the geopolitical front, Yemen’s Iran-aligned Houthis initiated a new series of assaults on Saudi Arabia and were entrenching themselves along Yemen’s western coastline adjacent to the Red Sea. Oil prices increased amid apprehensions regarding potential supply disruptions. Meanwhile, US 10-year Treasury yields reached the key 5% level on Monday for the first time since October 2023.

Analysts perceive the milestone as a pivotal point that may carry broader ramifications for the US economy, potentially exerting pressure on the stock market by diminishing the relative attractiveness of US equities. Spot gold remained relatively stable at $4,300.96 per ounce, following a decline to its lowest point since August 7 on Monday. US gold futures declined by 0.3%, settling at $4,341.10. Spot silver increased by 0.1% to $63.28 per ounce, whereas platinum decreased by 0.1% to $1,757.46, and palladium saw a decline of 0.7% to $1,283.61. Manoj Kumar Jain anticipates that gold and silver prices will experience volatility this week, influenced by fluctuations in crude oil prices and the dollar index, particularly in the context of the upcoming monetary policy meetings of the US Federal Reserve and the Bank of Japan.

For today’s session, gold is anticipated to encounter support in the range of $4,310-$4,284 per troy ounce, whereas resistance is projected at $4,385-$4,420. Silver exhibits support levels ranging from $63.20 to $62.40 per troy ounce, while resistance is observed between $65.40 and $66.20. On the MCX, gold exhibits support levels ranging from Rs 1,50,150 to Rs 1,49,400, while resistance is observed between Rs 1,52,400 and Rs 1,53,650. Silver exhibits support in the range of Rs 2,30,300 to Rs 2,28,000, whereas resistance is observed between Rs 2,36,000 and Rs 2,38,800. Jain indicated that long-term investors might consider accumulating gold and silver gradually during market declines, whereas traders should hold off on establishing new positions in these two precious metals until the outcome of the FOMC meeting is revealed.