Gold and silver prices reversed a three-day decline to commence higher on the Multi Commodity Exchange on Wednesday, despite the prevailing expectations of increased interest rates exerting pressure on demand for non-yielding assets. Investors shifted their attention to US inflation data for insights regarding the Federal Reserve’s policy trajectory. In the domestic market, MCX silver futures for September 2026 delivery increased by Rs 1,050, reaching Rs 2,26,487 per kg. Gold futures for October 2026 delivery increased by Rs 1,114, reaching Rs 1,47,346 per 10 grams.
The US personal consumption expenditures price index is set to be released later today, while the nonfarm payrolls report is anticipated on Friday. According to the CME FedWatch Tool, traders assign a 50% probability to a Federal Reserve rate hike in October and a 92% probability to a hike in December. Elevated interest rates generally exert downward pressure on gold, as investors are likely to prefer assets that generate yields over the non-yielding metal. US consumer confidence declined to a level not seen in nearly 12.5 years in September, as households anticipate a worsening of business and labour market conditions over the next six months, influenced by the ongoing conflict in the Middle East and increasing interest rates.
Spot gold remained relatively stable at $4,178.59 an ounce as of 0037, reflecting a decline of nearly 6% for the month to date. US gold futures increased by 0.7%, reaching a price of $4,210.30. Among other precious metals, spot silver decreased by 0.2% to $61.33 per ounce, whereas platinum increased by 0.5% to $1,713.15 and palladium also saw a rise of 0.5% to $1,228.95. All three metals are poised for monthly declines. Manoj Kumar Jain indicated that gold has support at $4,164-4,140 per troy ounce, while resistance is positioned at $4,220-4,250. For silver, support is observed in the range of $60.60 to $60.00, while resistance is identified between $62.40 and $63.00 per troy ounce during Wednesday’s session.
On the MCX, gold exhibits support levels between Rs 1,47,700 and Rs 1,47,200, with resistance positioned at Rs 1,49,650 to Rs 1,50,150. In contrast, silver shows support at Rs 2,24,000 to Rs 2,22,000, while resistance is noted at Rs 2,27,000 to Rs 2,28,800. Jain recommended exercising patience and awaiting a period of market stability prior to establishing new positions in gold and silver.
