MCX gold prices fall Rs 1,400/10 gram, silver tanks Rs 4,300/kg ahead of Diwali while rate hike bets linger. What should you do?
Gold and silver prices declined on MCX as rising oil prices and renewed inflation concerns weighed on bullion sentiment. Investors tracked US midterm elections and Fed rate expectations, while experts flagged key trading levels amid continued vola...
By Veer Sharma, ETMarkets.com | Updated:
ETMarkets.com
Gold and silver slip on MCX as oil rebound fuels inflation fears.
Gold and silver prices opened lower on the Multi Commodity Exchange (MCX) on Tuesday after a rebound in oil prices following a fresh US attack on Iran raised inflation fears, while investors awaited the outcome of the US midterm elections later in the day.
In the domestic market, MCX silver futures for December 2026 delivery were down by Rs 4,300 to Rs 1,83,779 per kg. Gold futures for December 2026 delivery fell by Rs 1,400 to Rs 1,38,823 per 10 grams.
Oil prices dropped more than 7% on Monday after Tehran said discussions with the United States to end their eight-month war were still underway. The latest round of talks between Iran and Qatari mediators concluded after several days, with revised proposals but no breakthrough.
Meanwhile, US manufacturing activity gained momentum in October, supported by strong domestic demand, although inflation at factory gates remained elevated.
Investors are now looking to the US midterm elections for indications of the country's fiscal policy direction and their potential impact on broader market sentiment. Traders currently see a 73% probability of the Federal Reserve raising interest rates in December, according to CME's FedWatch tool. Higher interest rates increase the opportunity cost of holding non-yielding assets such as gold, making bullion less attractive to investors.
Also Read: Silver crashes below $60 from $122 and enters oversold zone. What should you do?
Among other precious metals, spot silver gained 0.3% to $50.79 per ounce, while platinum rose 0.2% to $1,451.48. Palladium was also up 0.2% at $970.50.
Investors will also track the US Factory Orders data for September, scheduled for release later in the day.
He said gold has support at $3,940-3,880 per troy ounce, while resistance is placed at $4,000-4,044. Silver has support at $49.40-48.80 per ounce, with resistance at $51.80-52.40.
On the MCX, gold has support at Rs 1,39,400-1,38,200 and resistance at Rs 1,41,400-1,42,000. Silver has support at Rs 1,81,400-1,80,000, while resistance is seen at Rs 1,85,500-1,88,000.
Jain suggested that long-term investors could accumulate gold and silver through systematic investment plans (SIPs) amid the market decline. However, he advised traders to remain cautious ahead of the US midterm elections.
Also Read: Only 3.2% of working Indians trade stocks. Why Morgan Stanley likes NSE
Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
In the domestic market, MCX silver futures for December 2026 delivery were down by Rs 4,300 to Rs 1,83,779 per kg. Gold futures for December 2026 delivery fell by Rs 1,400 to Rs 1,38,823 per 10 grams.
Oil prices dropped more than 7% on Monday after Tehran said discussions with the United States to end their eight-month war were still underway. The latest round of talks between Iran and Qatari mediators concluded after several days, with revised proposals but no breakthrough.
Meanwhile, US manufacturing activity gained momentum in October, supported by strong domestic demand, although inflation at factory gates remained elevated.
Investors are now looking to the US midterm elections for indications of the country's fiscal policy direction and their potential impact on broader market sentiment. Traders currently see a 73% probability of the Federal Reserve raising interest rates in December, according to CME's FedWatch tool. Higher interest rates increase the opportunity cost of holding non-yielding assets such as gold, making bullion less attractive to investors.
Also Read: Silver crashes below $60 from $122 and enters oversold zone. What should you do?
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Gold, silver international prices
Spot gold rose 0.3% to $3,960.80 per ounce by 0032 GMT, building on its recovery from a one-year low touched on Friday. US gold futures for December delivery remained steady at $3,970.80.Among other precious metals, spot silver gained 0.3% to $50.79 per ounce, while platinum rose 0.2% to $1,451.48. Palladium was also up 0.2% at $970.50.
Investors will also track the US Factory Orders data for September, scheduled for release later in the day.
How should you trade gold?
Manoj Kumar Jain of Prithvi Finmart expects gold and silver prices to remain volatile this week, driven by fluctuations in crude oil prices and the dollar index, along with geopolitical tensions.ADVERTISEMENT
He said gold has support at $3,940-3,880 per troy ounce, while resistance is placed at $4,000-4,044. Silver has support at $49.40-48.80 per ounce, with resistance at $51.80-52.40.
On the MCX, gold has support at Rs 1,39,400-1,38,200 and resistance at Rs 1,41,400-1,42,000. Silver has support at Rs 1,81,400-1,80,000, while resistance is seen at Rs 1,85,500-1,88,000.
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Jain suggested that long-term investors could accumulate gold and silver through systematic investment plans (SIPs) amid the market decline. However, he advised traders to remain cautious ahead of the US midterm elections.
Also Read: Only 3.2% of working Indians trade stocks. Why Morgan Stanley likes NSE
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,02,328/8 grams while pure gold (24 carat) prices stand at Rs 1,11,624/8 grams.Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,02,208/8 grams while pure gold (24 carat) prices stand at Rs 1,11,504/8 grams.Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,02,208/8 grams while pure gold (24 carat) prices stand at Rs 1,11,504/8 grams.Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,02,008/8 grams while pure gold (24 carat) prices stand at Rs 1,11,504/8 grams.Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
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