Gold and silver prices began the trading session on the Multi Commodity Exchange with a decrease on Monday, despite the backdrop of a weaker US dollar and lower oil prices. Investors are preparing for significant US inflation data this week, which could offer valuable insights into the Federal Reserve’s upcoming policy decisions. In the domestic market, December 2026 delivery silver futures on MCX saw a decrease of Rs 1,400, resulting in a price of Rs 2,24,326 per kg. Gold futures for December 2026 delivery declined by Rs 1,450, concluding at Rs 1,51,499 per 10 grams. Declining oil prices have alleviated short-term concerns regarding inflation and interest rates, thereby providing a boost to gold, as noted by a market analyst. US President Donald Trump announced an energy ceasefire between Russia and Ukraine on Sunday, stating that it would take effect immediately.
Ukrainian President Volodymyr Zelenskiy has expressed that he is still in anticipation of additional information concerning the agreement. Oil prices declined in response to expectations of increased Russian supplies. The US dollar remained subdued, rendering gold, which is priced in dollars, more affordable for buyers utilising other currencies. Gold is generally regarded as a hedge against inflation; nonetheless, high interest rates frequently reduce the appeal of this non-yielding asset. Investors are presently focusing on the forthcoming US Consumer Price Index report set for Wednesday, which will be followed by the Producer Price Index and retail sales data on Thursday. Traders employing CME’s FedWatch tool attribute a 17% probability to an interest rate increase in October, while forecasting an 86% likelihood for a hike by December.
Meanwhile, US consumer sentiment experienced a further decline in early October, as the rising cost of living, exacerbated by the conflict in the Middle East, adversely affected households’ economic perceptions. Spot gold increased by 0.3% to $4,206.01 per ounce as of 0253, following a peak not seen since October 2 earlier in the session. US gold futures for December delivery rose by 0.3%, reaching $4,230.40. Among other precious metals, spot silver rose 0.5% to $61.12 per ounce, platinum gained 1% to $1,704.70, and palladium climbed 1.2% to $1,161.81. Manoj Kumar Jain indicated that gold has support at 4,184-4,155 per troy ounce, while resistance is positioned at 4,220-4,264.
Silver demonstrates support in the range of $60.20 to $59.10 per troy ounce, with resistance noted between $62.20 and $63.50. On the MCX, gold demonstrates support levels at Rs 150,500-149,800 and resistance levels at Rs 152,000-152,850. Silver demonstrates support levels ranging from Rs 224,000 to Rs 222,200, while resistance is observed between Rs 227,700 and Rs 229,100. Long-term investors may consider accumulating gold and silver during price dips, whereas traders might adopt a buy-on-dips strategy, provided that gold maintains a level above $4,110 per troy ounce and silver remains above $59.10 per troy ounce.
