Gold prices fall for 2nd day, silver at Rs 2.39 lakh/kg ahead of key US data. Key levels to track on Wednesday
Gold and silver prices opened lower on MCX as investors assessed renewed Middle East tensions, higher crude prices and expectations for US inflation data. Traders are pricing in around a 60% chance of a Fed rate hike.
By Veer Sharma, ETMarkets.com |
ETMarkets.com
Gold, silver slip as Fed bets and Middle East tensions weigh.
Gold and silver prices opened lower on the Multi-Commodity Exchange on Wednesday even as the dollar stayed subdued, while renewed attacks between the U.S. and Iran and upcoming inflation data kept markets focused on the interest-rate outlook.
In the domestic market, MCX silver futures for September 2026 delivery were down Rs 400 to Rs 2,39,081 per kg. Gold futures for October 2026 delivery declined by Rs 500 to Rs 1,52,101 per 10 grams.
Investors are now awaiting U.S. producer price index data due on Thursday, followed by consumer price index data on Friday.
The conflict in the Middle East also intensified, with Iranian-backed Houthis in Yemen launching strikes on several Saudi cities, drawing another U.S. ally deeper into the war. At the same time, U.S. forces struck several Iranian oil tankers, while Iran attacked a U.S. base in Jordan.
Brent crude prices rose for a fourth consecutive session. Higher crude prices generally add to inflationary pressure as increased energy costs feed into the wider economy.
According to the CME FedWatch Tool, traders are pricing in around a 60% chance of a Federal Reserve interest-rate hike at its upcoming policy meeting.
While gold is commonly seen as a hedge against inflation, higher interest rates reduce the appeal of the non-interest-bearing metal.
Among other precious metals, spot silver rose 0.4% to $66.00 an ounce, platinum gained 1% to $1,831.76, while palladium declined 0.3% to $1,344.69.
On the MCX, gold has support at Rs 1,51,500-1,50,150 and resistance at Rs 1,53,300-1,54,100. Silver is expected to find support at Rs 2,37,700-2,35,000, while resistance is seen at Rs 2,41,400-2,44,000.
Jain said long-term investors can accumulate gold and silver during the market fall, while traders should wait before taking fresh long positions ahead of the Indian government Cabinet meeting outcomes amid rumours of a duty cut.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
In the domestic market, MCX silver futures for September 2026 delivery were down Rs 400 to Rs 2,39,081 per kg. Gold futures for October 2026 delivery declined by Rs 500 to Rs 1,52,101 per 10 grams.
Investors are now awaiting U.S. producer price index data due on Thursday, followed by consumer price index data on Friday.
The conflict in the Middle East also intensified, with Iranian-backed Houthis in Yemen launching strikes on several Saudi cities, drawing another U.S. ally deeper into the war. At the same time, U.S. forces struck several Iranian oil tankers, while Iran attacked a U.S. base in Jordan.
Brent crude prices rose for a fourth consecutive session. Higher crude prices generally add to inflationary pressure as increased energy costs feed into the wider economy.
According to the CME FedWatch Tool, traders are pricing in around a 60% chance of a Federal Reserve interest-rate hike at its upcoming policy meeting.
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While gold is commonly seen as a hedge against inflation, higher interest rates reduce the appeal of the non-interest-bearing metal.
Gold, silver international prices
Spot gold rose 0.4% to $4,372.19 per ounce, while U.S. gold futures fell 0.5% to $4,416.00.Among other precious metals, spot silver rose 0.4% to $66.00 an ounce, platinum gained 1% to $1,831.76, while palladium declined 0.3% to $1,344.69.
How should you trade gold?
Manoj Kumar Jain of Prithvi Finmart said gold is likely to find support at $4,400-4,365 per troy ounce, while resistance is placed at $4,474-4,510. For silver, support stands at $65.80-64.70, with resistance at $68.00-69.10 per troy ounce in today’s session.ADVERTISEMENT
On the MCX, gold has support at Rs 1,51,500-1,50,150 and resistance at Rs 1,53,300-1,54,100. Silver is expected to find support at Rs 2,37,700-2,35,000, while resistance is seen at Rs 2,41,400-2,44,000.
Jain said long-term investors can accumulate gold and silver during the market fall, while traders should wait before taking fresh long positions ahead of the Indian government Cabinet meeting outcomes amid rumours of a duty cut.
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Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,14,048/8 grams while pure gold (24 carat) prices stand at Rs 1,24,408/8 grams.Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,13,928/8 grams while pure gold (24 carat) prices stand at Rs 1,24,288/8 grams.Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,14,168/8 grams while pure gold (24 carat) prices stand at Rs 1,24,544/8 grams.Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,13,928/8 grams while pure gold (24 carat) prices stand at Rs 1,24,288/8 grams.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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