Gold and silver prices commenced the trading session with a notable decline on the Multi Commodity Exchange this Thursday, as market participants anticipated insights from the upcoming US Federal Reserve policy meeting regarding the trajectory of interest rates, amidst ongoing tensions in the Middle East. In the domestic market, MCX silver futures for December 2026 delivery decreased by Rs 5,700, settling at Rs 2,03,520 per kg. Gold futures for December 2026 delivery experienced a decrease of Rs 2,000, bringing the price to Rs 1,44,196 per 10 grams. Geopolitical tensions continued to dominate headlines as Saudi air defences successfully intercepted a drone aimed at a facility within Saudi Aramco’s Shaybah oilfield on Wednesday, resulting in the deaths of two individuals, according to the energy ministry. The US State Department has ordered certain diplomats and their family members to depart from its missions in Saudi Arabia and intends to withdraw family members from various other US missions in the region, according to US officials.
Investors are closely monitoring the Fed’s policy meeting scheduled for October 27-28, as well as the upcoming Personal Consumption Expenditures data, which serves as a crucial inflation indicator for the central bank in its pursuit of a 2% inflation target. Nearly all economists anticipate that the Federal Reserve will refrain from increasing interest rates this month, with a potential hike expected in December. This outlook reflects policymakers’ indication of patience in the face of ongoing inflationary pressures. Market participants assign a 16% likelihood to a rate hike occurring next week, while they are factoring in a 90% probability for an increase in December, as indicated by CME’s FedWatch Tool. Higher interest rates typically exert downward pressure on gold prices by raising the opportunity cost associated with holding bullion, which yields no interest income.
Meanwhile, the euro zone economy has navigated this year’s energy shock more effectively than anticipated, bolstered by reduced reliance on fossil fuels, enhanced fiscal support, and a surge in artificial intelligence investment, according to European Central Bank economists on Wednesday. Spot gold experienced a decline of 0.6%, settling at $4,115.50 per ounce by 0040, following a dip to $4,104.33 on Wednesday, marking its lowest point since October 15. Meanwhile, US gold futures for December delivery decreased by 0.4%, reaching $4,132.30. Among other precious metals, spot silver fell 1.1% to $57.33 an ounce, platinum declined 1.1% to $1,609.95, and palladium slipped 0.8% to $1,078.52. Manoj Kumar Jain indicated that gold and silver prices are expected to exhibit volatility this week, influenced by variations in crude oil prices and the dollar index, as well as ongoing geopolitical tensions.
Gold exhibits support levels ranging from $4,110 to $4,084 per troy ounce, with resistance identified between $4,174 and $4,192. In contrast, silver shows support at $56.60 to $55.80 and resistance within the $58.80 to $59.50 range per troy ounce in the current trading session. On the MCX, gold exhibits support levels between Rs 1,45,400 and Rs 1,44,650, with resistance identified in the range of Rs 1,46,600 to Rs 1,47,200. In contrast, silver shows support at Rs 2,08,000 to Rs 2,05,800, while resistance is observed between Rs 2,10,500 and Rs 2,12,000. He advised long-term investors to accumulate gold and silver through systematic investment plans during the current market decline, while traders should wait for markets to stabilise before initiating fresh positions.
