Gold and silver prices exhibited a mixed opening on the Multi Commodity Exchange on Monday. Recent weak economic data from the US has significantly diminished expectations for a rate hike by the Federal Reserve in October, thereby enhancing the attractiveness of non-yielding assets. In the domestic market, silver futures for December 2026 delivery increased by Rs 1,025, reaching Rs 2,26,902 per kg. Gold futures for December 2026 delivery decreased by Rs 1,400, settling at Rs 1,49,050 per 10 grams. US job growth decelerated more than anticipated in September, with nonfarm payrolls for the preceding two months being revised significantly downward, according to data released on Friday.
Markets currently reflect a 22% likelihood of a Federal Reserve rate hike in October, a decrease from 64% just a week prior, while the probability of a rate increase in December remains steady at 87%, as indicated by the CME FedWatch Tool. The US central bank last month raised its benchmark overnight interest rate by 25 basis points to a range of 3.75%-4.00%, marking its first rate increase in three years. In recent geopolitical developments, Yemen’s Saudi-backed, internationally recognised government announced on Sunday its initiation of a significant military campaign aimed at reclaiming all territories under the control of the Iran-backed Houthis. Oil prices experienced a decline as increased crude exports from the Middle East and the release of oil reserves by G7 nations contributed to supply levels.
This occurred despite ongoing apprehensions regarding potential damage to Gulf oil infrastructure in light of the Iran conflict. Spot gold increased by 0.4% to $4,158.17 per ounce by 0150, while US gold futures for December delivery advanced by 0.6% to $4,186.40. Among other precious metals, spot silver rose 1.7% to $61.40 per ounce, platinum gained 0.6% to $1,708.48, while palladium rose 0.6% to $1,175.04. Manoj Kumar Jain indicated that gold is maintaining its support level of $4,110 per troy ounce, whereas silver is sustaining support at $59.10 per troy ounce. He stated that gold prices may exhibit additional strength only after surpassing and maintaining levels above $4,255, whereas silver must exceed and hold above $62.40.
On the MCX, December gold maintains its support level at Rs 1,47,700, whereas silver is sustaining support at Rs 2,18,800. Jain indicated that gold may experience additional strength should prices surpass and maintain levels above Rs 1,52,000, whereas silver must exceed and hold above Rs 2,31,000. Jain advised against establishing new positions in gold and silver in light of the extended weekend and the prevailing uncertainty regarding US-Iran peace negotiations.
