Gold and silver prices commenced the day on a lower note on the Multi Commodity Exchange this Tuesday, influenced by a rebound in oil prices triggered by a recent US military action against Iran, which has heightened inflation concerns. Meanwhile, investors are closely monitoring the developments surrounding the US midterm elections scheduled for later today. In the domestic market, MCX silver futures for December 2026 delivery experienced a decline of Rs 4,300, bringing the price to Rs 1,83,779 per kg. Gold futures for December 2026 delivery decreased by Rs 1,400, settling at Rs 1,38,823 per 10 grams. Oil prices experienced a decline exceeding 7% on Monday following Tehran’s announcement that negotiations with the United States aimed at concluding their eight-month conflict were still in progress.
The most recent discussions involving Iran and Qatari mediators have wrapped up after several days, yielding revised proposals yet failing to achieve a breakthrough. Meanwhile, US manufacturing activity experienced an uptick in October, bolstered by robust domestic demand, despite the persistence of elevated inflation at factory gates. Investors are currently focusing on the US midterm elections as they seek signals regarding the trajectory of the nation’s fiscal policy and its possible effects on overall market sentiment. Traders currently assign a 73% probability to the Federal Reserve increasing interest rates in December, as indicated by CME’s FedWatch tool. Higher interest rates elevate the opportunity cost associated with holding non-yielding assets like gold, thereby diminishing the appeal of bullion to investors.
Spot gold increased by 0.3% to $3,960.80 per ounce as of 0032, continuing its rebound from a one-year low reached on Friday. US gold futures for December delivery held firm at $3,970.80. Among other precious metals, spot silver increased by 0.3% to $50.79 per ounce, while platinum experienced a rise of 0.2% to $1,451.48. Palladium experienced an increase of 0.2%, reaching a price of $970.50. Investors will monitor the US Factory Orders data for September, which is set to be released later today. Manoj Kumar Jain anticipates that gold and silver prices will exhibit volatility this week, influenced by variations in crude oil prices and the dollar index, as well as ongoing geopolitical tensions. He stated that gold has support at $3,940-3,880 per troy ounce, while resistance is positioned at $4,000-4,044.
Silver exhibits support within the range of $49.40 to $48.80 per ounce, while encountering resistance between $51.80 and $52.40. On the MCX, gold exhibits support levels at Rs 1,39,400-1,38,200 and resistance levels at Rs 1,41,400-1,42,000. Silver exhibits support within the range of Rs 1,81,400 to Rs 1,80,000, whereas resistance is identified between Rs 1,85,500 and Rs 1,88,000. Jain suggested that long-term investors could accumulate gold and silver through systematic investment plans amid the market decline. However, he advised traders to exercise caution in anticipation of the US midterm elections.
