Gold and silver prices commenced the trading session on a positive note on the Multi Commodity Exchange this Monday, buoyed by a drop in oil prices that alleviated inflationary pressures. Market participants are now keenly anticipating the forthcoming policy decision from the US Federal Reserve later this week. In the domestic market, MCX silver futures for December 2026 delivery increased by Rs 1,500, reaching Rs 1,97,186 per kg. Gold futures for December 2026 delivery increased by Rs 700, reaching Rs 1,42,700 per 10 grams. Oil prices experienced a decline on Monday following a rise to levels close to six-month highs late last week. However, ongoing assaults on Saudi Arabia have sustained apprehensions regarding potential supply disruptions. On Sunday, Qatari mediators were present in Tehran, working to alleviate regional tensions in collaboration with the United States, according to an official.
Investors are anticipating the Federal Reserve’s policy meeting set for October 27-28, with the decision expected on October 28. The US Personal Consumption Expenditures inflation data, a critical indicator observed by the central bank in its pursuit of a 2% inflation target, is set to be released tomorrow. Markets largely anticipate that the Fed will maintain interest rates at their current levels this week, with traders assigning a 75% likelihood to a potential rate increase in December, as indicated by CME’s FedWatch Tool. Gold is traditionally regarded as a safeguard against inflation; however, elevated interest rates generally diminish the attractiveness of this non-yielding asset.
Spot gold increased by 0.4% to $4,009.87 per ounce as of 0342, rebounding from its lowest point since mid-July in the prior session. Bullion experienced a decline of 4% last week, representing its most significant weekly drop since June. US gold futures for December delivery increased by 0.4% to $4,023.50 per ounce. Among other precious metals, spot silver increased by 0.6% to $54.19 per ounce, platinum remained unchanged at $1,551.31, and palladium experienced a gain of 0.6% to $1,050.50. Manoj Kumar Jain anticipates that gold and silver prices will experience volatility this week, influenced by fluctuations in crude oil prices, the dollar index, geopolitical tensions, and the forthcoming FOMC meeting.
For gold, support is observed at $3,980-3,940 per troy ounce, whereas resistance is identified at $4,034-4,072. Silver exhibits support within the range of $52.80 to $51.80 per troy ounce, while encountering resistance between $55.00 and $56.40. On the MCX, gold exhibits support levels at Rs 1,40,850-1,40,000 and resistance levels at Rs 1,42,700-1,43,650. Silver’s support levels are positioned between Rs 1,94,000 and Rs 1,91,400, whereas resistance is identified in the range of Rs 1,97,700 to Rs 1,99,600. Jain recommended that long-term investors consider a gradual accumulation of gold and silver via a systematic investment plan in light of the ongoing market downturn. However, he advised traders to exercise caution in anticipation of the FOMC meeting.
