Gold and silver prices commenced the day on a downward trajectory on the Multi Commodity Exchange this Tuesday, influenced by a robust US dollar and increasing Treasury yields that exerted pressure on the metals. However, the extent of these losses was mitigated by diminished expectations surrounding a Federal Reserve interest rate hike in the current month. In the domestic market, MCX silver futures for December 2026 delivery increased by Rs 1,000, reaching Rs 2,25,127 per kg. Gold futures for December 2026 delivery decreased by Rs 415, settling at Rs 1,49,901 per 10 grams. Over the course of two days, the price of the yellow metal has decreased by Rs 1,500 per 10 grams.
The dollar maintained its strength, resulting in higher costs for gold and other commodities priced in greenbacks for holders of alternative currencies. Meanwhile, yields on 10-year and 30-year US Treasury bonds reached levels not seen in 24 years on Monday, as persistent weakness in the bond market dampened sentiment. Expectations for a US rate hike in October diminished following the release of data on Friday, which indicated that job growth in the US decelerated more than anticipated in September. Additionally, nonfarm payrolls for the preceding two months were adjusted downward. Traders are assigning an 87% likelihood to a rate increase in December, as indicated by CME’s FedWatch Tool. Elevated interest rates increase the opportunity cost associated with holding non-yielding gold.
Separate data indicated that activity in the US services sector experienced a deceleration in September. Robust domestic demand has further strained supply chains, resulting in a rise in the index of prices that businesses pay for inputs, reaching its highest point in over four years. This trend indicates that inflation may persist at elevated levels through 2027. In the Middle East, forces aligned with the Yemeni government and supported by Saudi Arabia have swiftly progressed to reclaim control over the coastal region surrounding the Bab el-Mandeb Strait, extending their reach to the city of Mocha, according to government sources. The forces have successfully expelled Iran-backed Houthis from the majority of the territories they had seized in the previous month. Spot gold experienced a decline of 0.3%, trading at $4,128.69 per ounce as of 0155, whereas US gold futures remained relatively stable at $4,156.00.
Among other precious metals, spot silver declined 0.6% to $60.67 per ounce, platinum fell 0.7% to $1,710.08, and palladium eased 0.2% to $1,170.15. Manoj Kumar Jain indicated that gold has support levels ranging from 4,134 to 4,110, with resistance levels between 4,184 and 4,200 per troy ounce. In contrast, silver’s support is noted at 60.60 to 60.00, while its resistance is identified at 62.40 to 63.00 per troy ounce. On the MCX, gold exhibits support levels at Rs 1,48,800-1,48,100 and resistance levels at Rs 1,49,900-1,50,350. In contrast, silver shows support at Rs 2,24,400-2,22,000 and resistance at Rs 2,27,700-2,29,500. We suggest traders must wait for some stability in the markets to take fresh positions while long-term investors can accumulate gold and silver in this market fall’, he added.
