Gold and silver prices commenced trading on the Multi Commodity Exchange on Friday with a mixed performance, buoyed by declining oil prices and a lacklustre US dollar. Meanwhile, investors remained vigilant regarding ongoing developments in the Middle East and the broader implications for global interest rates. In the domestic market, silver futures for September 2026 delivery increased by Rs 1,000, reaching Rs 2,39,008 per kg. Gold futures for October 2026 delivery decreased by Rs 800, settling at Rs 1,52,171 per 10 grams. The Federal Reserve raised interest rates on Wednesday and indicated that further hikes could follow in the coming months. Its updated quarterly economic projections indicated that 16 of 18 policymakers anticipate at least one additional 25-basis-point rate increase by the conclusion of this year.

Despite the recent increase in US interest rates, Goldman Sachs has maintained its forecast for the price of gold at $5,400 per troy ounce by the end of 2027. The bank indicated that a tighter monetary policy is anticipated to decelerate the rally in bullion; however, it is improbable that it will completely derail the trend, according to a report. Gold is traditionally viewed as a safeguard against inflation; however, elevated interest rates may dampen demand for this non-yielding asset by enhancing the appeal of yield-bearing investments. The Bank of England maintained its current interest rates on Thursday, while cautioning that there remains potential for future increases. The Bank of Japan is anticipated to elevate rates to a 31-year peak on Friday and indicate additional hikes to tackle inflationary pressures. Meanwhile, data indicated that new applications for unemployment benefits in the US experienced an unexpected decline last week.

However, the decline was probably amplified by the Labour Day holiday, whereas the fundamental trend remained indicative of a stable labour market. Spot gold increased by 0.3% to $4,352.60 per ounce, whereas US gold futures for December delivery decreased by 0.2% to $4,391.60. Among other precious metals, spot silver rose 0.7% to $65.64 per ounce, platinum gained 0.9% to $1,785.55, while palladium edged up 0.1% to $1,292.47. Manoj Kumar Jain indicated that gold and silver prices are anticipated to exhibit significant volatility during today’s session, yet are expected to maintain their weekly closing support levels of $4,240 and $62.00 per troy ounce, respectively. He stated that fluctuations in crude oil prices and the dollar index, in conjunction with the results of the Bank of Japan’s monetary policy meeting, may contribute to ongoing volatility in precious metals.

For today’s session, gold exhibits support levels between 4,355 and 4,310, with resistance identified in the range of 4,440 to 4,484 per troy ounce. In contrast, silver shows support at 64.80 to 63.50, while resistance is observed between 67.40 and 68.80 per troy ounce. On the MCX, gold exhibits support levels at Rs 1,51,650-1,50,500 and resistance levels at Rs 1,53,800-1,55,000. In contrast, silver shows support at Rs 2,36,000-2,33,300 and resistance at Rs 2,40,400-2,43,000. Jain advised that traders should realise gains on long positions in gold and silver with each increase in prices.