Gold and silver prices experienced a significant increase on the Multi Commodity Exchange on Monday, driven by a drop in oil prices that alleviated inflation worries. Investors are now looking ahead to important US inflation data and new insights regarding the Federal Reserve’s monetary policy direction. In the domestic market, MCX silver futures for December 2026 delivery increased by Rs 4,000, reaching Rs 1,88,979 per kg. Gold futures for December 2026 delivery increased by Rs 1,400, reaching Rs 1,43,933 per 10 grams. Oil prices declined following indications from US President Donald Trump that he was unlikely to initiate additional military actions against Iran, as diplomatic initiatives aimed at resolving the conflict progressed. The development alleviated apprehensions regarding possible interruptions to worldwide oil supplies.
Declining crude oil prices may alleviate inflationary pressures, subsequently diminishing the outlook for prolonged elevated interest rates. This, in turn, reduces the opportunity cost associated with maintaining non-yielding assets like gold. The dollar weakened, resulting in gold priced in the greenback becoming more affordable for international buyers, thereby providing additional support to bullion. However, the robust data from the US labour market may constrain the upward movement in gold prices. US job growth accelerated in October, with the unemployment rate declining to 4.1%. This development reinforces expectations of a robust labour market and maintains the Federal Reserve’s trajectory toward a potential interest rate increase in December.
Traders are currently assigning a 79% probability to a December rate hike, an increase from the 71% observed prior to the release of the payrolls data, as indicated by CME’s FedWatch tool. Investors are currently focusing on the upcoming US Consumer Price Index report set for Tuesday, as well as the Producer Price Index data expected on Friday, seeking additional insights into the Federal Reserve’s policy direction. Spot gold gained 1.6% to $4,129.69 per ounce by 0220, while US gold futures for December delivery advanced 1.6% to $4,139.00. The yellow metal experienced an increase of approximately 5% in the previous week. Among other precious metals, spot silver increased by 2.8% to $53.31 per ounce. Platinum increased by 1.6% to $1,556.14, whereas palladium rose by 2.1% to $1,044.28.
Ponmudi R stated that MCX gold concluded the week positively, settling close to Rs 1,42,167 after rebounding from the Rs 1,37,500-Rs 1,38,300 support zone. On the upside, immediate resistance is positioned at Rs 1,43,000-Rs 1,43,700, followed by Rs 1,45,300-Rs 1,46,000. A sustained breakout above these levels could pave the way for a retest of recent highs. On the downside, the Rs 1,41,000-Rs 1,40,000 range constitutes the immediate support zone. A breach of this range could lead to a decline in prices toward Rs 1,38,300-Rs 1,37,500. He added that the rupee strengthened approximately 1.1% during the week to nearly 93.90 against the dollar, thereby constraining gains in domestic gold prices relative to international benchmarks.
