Gold prices up Rs 1,300/10 grams; silver rebounds Rs 3,400/kg as falling oil eases rate cut bets. Buy, sell or hold?

Gold and silver prices opened higher on the Multi Commodity Exchange on Thursday after a sharp fall in oil raised hopes that the US Fed will keep rates unchanged. Further, a falling dollar lent support to precious metals, while investors turned their attention to highly anticipated remarks from the U.S. Federal Reserve Chair Kevin Warsh later this week.

In the domestic market, MCX silver futures for September 2026 delivery were up Rs 3,400 to Rs 2,42,999 per kg. Gold futures for October 2026 delivery rose by Rs 1,285 to Rs 1,60,898 per 10 grams.

International gold gained more than 5% last week after the U.S. Treasury announced an expansion in purchases of older long-dated bonds. The move fuelled concerns about dollar debasement and helped lift demand for gold.


Investors are now closely watching Warsh's remarks at the annual Jackson Hole symposium in Wyoming for clues on the Federal Reserve's policy direction.

Markets are pricing in a 36.5% probability of a U.S. rate hike in September and a 72.7% chance of a hike by December, according to the CME FedWatch Tool.

Data released on Wednesday showed annual U.S. inflation unexpectedly remained unchanged in July, staying well above the Fed's 2% target for the 65th consecutive month. The pause in the decline from a recent peak driven by the Iran war is likely to add to the central bank's debate over whether to raise interest rates or keep them unchanged.

Gold is widely viewed as a hedge against geopolitical and economic risks. However, higher interest rates can make the non-yielding asset less attractive.

Oil prices slipped on Thursday, extending a run of losses, as hopes of a reopening of the key Strait of Hormuz grew amid diplomatic efforts involving Iran and Qatar. A reopening could ease concerns over supply disruptions caused by the Middle East war.

Also read: Gold prices jump 7% to log best weekly gain in 8 months. Start of another yellow metal bull run?

Gold, silver international prices

Spot gold rose 0.8% to $4,630.09 per ounce, while U.S. gold futures gained 0.7% to $4,685.50.

Among other precious metals, spot silver climbed 1.7% to $69.28, platinum gained 1.1% to $1,848.57, and palladium rose 0.5% to $1,334.49.

How should you trade gold?

Manoj Kumar Jain of Prithvi Finmart said gold has support at $4,610-4,574 per troy ounce, while resistance is seen at $4,694-4,720. For silver, support is at $67.10-66.00 per troy ounce, while resistance is placed at $68.80-70.00.

On the MCX, gold has support at Rs 1,58,800-1,57,700 and resistance at Rs 1,60,600-1,61,500. Silver has support at Rs 2,37,000-2,34,400, while resistance is at Rs 2,42,000-2,44,500.

Jain recommended that traders stay away from the market until there is clarity from the government on rumours of a duty cut. However, he said long-term investors can accumulate gold and silver in a staggered manner during the market fall.

Read more: Explained: Why South Korea bought gold after 13 years and what it means for yellow metal investors?

Gold rates in physical markets

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,20,192/8 grams while pure gold (24 carat) prices stand at Rs 1,31,112/8 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,20,072/8 grams while pure gold (24 carat) prices stand at Rs 1,30,992/8 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,20,072/8 grams while pure gold (24 carat) prices stand at Rs 1,30,992/8 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,20,072/8 grams while pure gold (24 carat) prices stand at Rs 1,30,992/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)