Gold and silver prices began trading positively on the Multi Commodity Exchange this Tuesday, even as the US dollar retained its strength. Investors are closely monitoring US inflation data for indications regarding the Federal Reserve’s interest-rate path. In the domestic market, MCX silver futures for December 2026 delivery rose by Rs 540, reaching Rs 2,23,420 per kg. Gold futures for December 2026 delivery rose by Rs 450, reaching Rs 1,49,990 per 10 grams. The US dollar remained close to an 18-month high reached in the previous session, leading to higher costs for dollar-priced metals for buyers using other currencies. Markets are presently concentrating on the forthcoming Consumer Price Index data, which is scheduled for release on Wednesday, and the Producer Price Index report anticipated on Thursday.
A higher-than-expected inflation reading, particularly in core inflation, could elevate expectations of an October rate hike and prompt another decline in gold prices. Higher interest rates typically increase the attractiveness of yield-bearing assets for investors in contrast to gold, which does not provide a yield. Traders are currently assigning a 21% likelihood to a Federal Reserve rate hike this month, while anticipating an 88% probability of an increase in December, as indicated by CME’s FedWatch tool. Meanwhile, geopolitical tensions persisted as Saudi Arabia announced a new wave of incoming fire, prompting the decision to maintain the closure of Riyadh airport for the time being. The announcement came shortly after Saturday’s deadly missile strike on a departure terminal, which has been attributed to Yemen’s Iran-aligned Houthis.
Spot gold experienced a decrease of 0.2%, settling at $4,164.45 per ounce as of 0201, after reaching a peak on Monday that represented a one-week high. US gold futures for December delivery decreased by 0.1%, settling at $4,187.90. Among other precious metals, spot silver decreased by 0.5% to $60.01 per ounce, platinum experienced a decline of 0.2% to $1,682.47, and palladium saw a slip of 0.5% to $1,137.69. Manoj Kumar Jain expects that gold and silver prices will undergo volatility this week, driven by variations in crude oil prices and the dollar index, alongside persistent geopolitical tensions. He stated that gold exhibits support within the range of 4,164 to 4,130 per troy ounce and faces resistance between 4,220 and 4,242.
In contrast, silver demonstrates support within the range of $59.80 to $59.10 and encounters resistance between $61.20 and $62.40 per troy ounce during Tuesday’s session. On the MCX, gold demonstrates support levels at Rs 1,48,800-1,48,100 and resistance levels at Rs 1,50,150-1,51,000. In contrast, silver demonstrates support within the range of Rs 2,21,400 to Rs 2,20,000, while resistance is observed between Rs 2,24,400 and Rs 2,26,000. Jain recommended that long-term investors gradually accumulate gold and silver through a systematic investment plan amid the ongoing decline, while advising traders to refrain from action until market stability is attained.
