Gold and silver prices commenced the trading session on the Multi Commodity Exchange with a notable decline on Friday, as escalating oil prices bolstered anticipations of prolonged elevated interest rates. Investors are anticipating the upcoming US Federal Reserve policy meeting scheduled for next week. In the domestic market, MCX silver futures for December 2026 delivery experienced a decline of Rs 5,700, bringing the price to 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. Investors are closely monitoring the $4,000-an-ounce threshold, as a sustained breach beneath this level may signal a transition from hopes for interest rate relief to apprehensions regarding enduring inflation, high yields, and a robust dollar, according to Monte Safieddine.
Oil prices surged approximately 4% to reach a five-month peak on Thursday, following Houthi assaults on Saudi Arabia that heightened apprehensions regarding potential further disruptions to energy supplies. Elevated energy prices have strengthened anticipations that the Federal Reserve will maintain higher interest rates for an extended period, thereby raising the opportunity cost associated with holding non-yielding gold. Any further escalation in geopolitical tensions could push oil prices higher, reviving inflation concerns, lifting bond yields and delaying interest rate cuts, Safieddine stated. Market focus has turned to the Federal Reserve’s policy meeting scheduled for October 27-28, alongside the upcoming release of Personal Consumption Expenditures data, which serves as the central bank’s favoured gauge of inflation in its pursuit of a 2% target. Market participants predominantly anticipate that the Federal Reserve will maintain the current interest rate levels in the upcoming week, whereas the likelihood of an increase in December stands at 80%.
Spot gold declined by 0.2% to $4,016.27 per ounce as of 0351, experiencing a modest recovery after reaching its lowest point since July 20 earlier in the session. The metal has experienced a decline of 3.5% this week, positioning it for its most significant weekly downturn since June. US gold futures for December delivery decreased by 0.7%, settling at $4,030.40. Among other precious metals, spot silver decreased by 1% to $53.98 per ounce, platinum saw a slight decline of 0.1% to $1,568.58, while palladium remained unchanged at $1,054.50. All three metals were on track for weekly losses. Manoj Kumar Jain anticipates that gold and silver prices will exhibit volatility during Friday’s session, influenced by variations in crude oil prices, the dollar index, and geopolitical tensions. Gold exhibits support within the range of $4,022 to $3,984 per troy ounce, while encountering resistance between $4,094 and $4,120.
Silver exhibits support levels ranging from $54.0 to $52.40 per troy ounce, while resistance is identified between $56.10 and $57.20. On the MCX, gold exhibits support levels ranging from Rs 1,42,200 to Rs 1,40,400, while resistance is observed between Rs 1,44,100 and Rs 1,45,000. Silver exhibits support within the range of Rs 1,96,000 to Rs 1,93,300, whereas resistance is identified between Rs 2,01,400 and Rs 2,03,800. Jain indicated that long-term investors might consider accumulating gold and silver via systematic investment plans amidst the market downturn. However, he advised traders to exercise caution before establishing new positions until the US midterm elections.
