Gold and silver prices commenced trading on the Multi-Commodity Exchange on Friday with an upward trajectory, driven by a depreciating US dollar and declining Treasury yields, which enhanced the attractiveness of bullion. Meanwhile, investors are evaluating ongoing inflationary pressures and the prospective direction of Federal Reserve interest rates. In the domestic market, MCX silver futures for December 2026 delivery increased by Rs 3,100, reaching Rs 2,24,304 per kg. Gold futures for December 2026 delivery decreased by Rs 1,500, settling at Rs 1,50,999 per 10 grams. The dollar’s rally has come to a halt, resulting in gold priced in the US currency becoming more accessible for purchasers using alternative currencies.
Meanwhile, the benchmark 10-year US Treasury yield experienced a decline for the second consecutive session. Investors are currently anticipating forthcoming economic data for new insights into the Federal Reserve’s monetary policy as it approaches its October meeting. Last month, the US central bank reached a unanimous decision to increase its policy rate by 0.25 percentage points. According to CME’s FedWatch tool, traders are assigning an 18% probability to a rate hike in October, while the likelihood of an increase in December stands at 82%. Gold is traditionally viewed as a safeguard against inflation; however, elevated interest rates generally diminish its attractiveness since the metal does not provide any yield.
Meanwhile, US President Donald Trump stated that Washington would refrain from attacking Iran prior to the November midterm congressional elections, noting that the two nations were engaged in “productive” discussions aimed at concluding the six-month-long conflict. Spot gold increased by 0.9% to $4,169.32 per ounce as of 0137, rebounding after reaching a two-month low on Wednesday. US gold futures also advanced 0.9% to $4,194.40. Among other precious metals, spot silver rose 1.1% to $60.00 per ounce, platinum gained 2.2% to $1,670.15, and palladium advanced 2.1% to $1,146.98. Despite the gains, all three metals are poised to record weekly losses. Manoj Kumar Jain indicated that gold has support levels ranging from $4,134 to $4,110 per troy ounce, with resistance levels positioned between $4,188 and $4,220.
Silver exhibits support in the range of $59.10 to $58 and faces resistance between $60 and $61.20 per troy ounce in the current trading session. On the MCX, gold exhibits support levels at Rs 1,48,800-1,48,100 and resistance levels at Rs 1,50,150-1,51,100. Silver exhibits support levels between Rs 2,19,800 and Rs 2,18,000, with resistance identified in the range of Rs 2,23,000 to Rs 2,25,000. Jain indicated that long-term investors might consider accumulating gold and silver gradually amid the ongoing market decline. However, he advised traders to exercise patience and await a period of stability in the markets before embarking on new positions.
