Gold and silver prices commenced the trading session on the Multi Commodity Exchange with an upward trajectory on Monday, coinciding with the Diwali festivities. This movement occurs amidst ongoing inflationary pressures, which have bolstered anticipations regarding a potential interest rate increase by the US Federal Reserve later this year, thereby diminishing the attractiveness of the non-yielding metal. In the domestic market, MCX silver futures for December 2026 delivery increased by Rs 2,800, reaching Rs 1,81,925 per kg. Gold futures for December 2026 delivery increased by Rs 613, reaching Rs 1,39,098 per 10 grams. Three Federal Reserve officials on Friday advocated for additional interest rate hikes to address persistently high inflation. Their comments represented the initial set of public remarks from central bank officials after the recent monetary policy meeting, during which short-term borrowing costs remained steady. US inflation data indicated that consumer prices increased in September, driven by higher costs for petrol and various other goods.
The figures reinforced expectations of a Fed rate hike in December. Traders are currently assigning a 75% probability to the likelihood of an interest rate increase in December, as indicated by the CME FedWatch Tool. Elevated interest rates raise the opportunity cost associated with holding non-yielding assets like gold, thereby diminishing the appeal of the metal to investors. Meanwhile, Iranian negotiators were in Doha on Sunday for a third consecutive day of discussions with Qatari mediators, aiming to reach an agreement to conclude the US-Israeli conflict with Iran, an official briefed on the talks informed. In Europe, inflation is anticipated to stay significantly elevated this year and the next compared to earlier predictions, with a potential return to the European Central Bank’s 2% target not expected until 2028, as indicated by the bank’s Survey of Professional Forecasters released on Friday. Spot gold increased by 0.5% to $3,894.89 per ounce, yet it remained close to its lowest level since October 2025, reached in the prior session. US gold futures for December delivery increased by 0.1% to $3,903.90 per ounce.
Gold declined to its lowest point since October 2025 on Friday, dropping beneath the significant $4,000-per-ounce threshold. Among other precious metals, spot silver rose 1.2% to $49.6935 per ounce, platinum gained 0.8% to $1,446.05, while palladium advanced 1.1% to $986.76. Manoj Kumar Jain indicated that gold and silver prices are expected to experience volatility this week, influenced by fluctuations in crude oil prices and the dollar index, as well as persistent geopolitical tensions. Gold exhibits support within the range of $3,880 to $3,800 per troy ounce, while resistance is observed between $3,940 and $4,000 per troy ounce in the current trading session. Silver exhibits support within the range of $48.00 to $46.60 per troy ounce, whereas resistance is identified between $50.00 and $51.40 per troy ounce.
On the MCX, gold exhibits support levels at Rs 1,36,600-1,35,000, while resistance is observed at Rs 1,40,000-1,41,400. Silver exhibits support levels between Rs 1,76,600 and Rs 1,74,000, while encountering resistance in the range of Rs 1,81,000 to Rs 1,84,000. Jain advised investors and traders to refrain from short-selling in markets that are significantly oversold. He stated that investors might consider accumulating gold and silver via systematic investment plans amid the ongoing decline, while traders ought to exercise caution in light of the upcoming US midterm elections.
