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Gold and silver prices rise on MCX ahead of US Fed policy decision
MCX gold October futures climbed 0.60% to ₹1,51,667 per 10 grams, while MCX silver December contracts rose 1.31% to ₹2,35,159 per kg in the morning session.
Gold and silver prices climbed in the domestic futures market in the morning session on Wednesday, 16 September, amid a decline in crude oil prices and ahead of the US Fed policy decision. MCX gold October futures was 0.57% up at ₹1,51,667 per 10 grams, while MCX silver December contracts were 1.31% up at ₹2,35,159 per kg around 9:10 AM.
International gold prices also witnessed strong buying, with US gold futures for December delivery rising 1.3% to $4,381.65 per troy ounce, as a decline in oil prices eased US dollar and 10-year bond yields.
Crude oil declined by about 1%, capping the rise in the dollar index and influencing gold prices. US 10-year bond yields cooled below 4.9%, supporting gold prices.
The US Federal Reserve is expected to raise interest rates by 25 basis points on Wednesday, as inflation has remained above the US Fed's 2% target for 65 consecutive months.
Geopolitical tensions remain a key factor influencing gold prices. The US-Iran conflict remains unresolved. According to media reports, Saudi Arabia intercepted a Houthi drone south of Mecca, while explosions were reported on Iran's Qeshm Island.
Washington is also facing mounting costs from the conflict, with the US Energy Secretary saying Saudi Arabia's vital East-West oil pipeline could resume operations within days.
Ravi Singh, Chief Research Officer at Master Capital Services, said MCX gold remains under pressure and continues to trade below both the 21-day EMA near ₹1,53,400 and the 55-day EMA around ₹1,51,900, keeping the near-term structure bearish.
“The Fed’s rate decision and Chair Kevin Warsh’s guidance will be critical for the next move. A hawkish stance could extend the downside pressure, while any dovish signal could trigger a short-covering recovery,” said Singh.
"The repeated rejection from higher levels indicates continued selling pressure, with ₹1,57,081 remaining the key resistance. A sustained breakout above this level could revive momentum towards ₹1,60,000, while ₹1,49,500 remains the crucial support. A decisive break below ₹1,49,500 could accelerate the decline towards ₹1,46,000. Until the price reclaims the key EMAs, sell-on-rise remains the preferred strategy," said Singh.
According to Manoj Kumar Jain of Prithvifinmart Commodity Research, MCX gold has support at ₹1,50,150 and ₹1,49,400 and resistance is at ₹1,51,500 and ₹1,52,200, while silver has support at ₹2,30,000 and ₹2,27,700 and resistance is at ₹2,34,400 and ₹2,37,000.
"We suggest long-term investors could accumulate gold and silver in this market fall, but traders must wait for the FOMC meeting outcomes for taking fresh positions," said Jain.
Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.