Gold Holds Steady at Rs 1.52 Lakh as Silver Falls Ahead of Fed
MCX gold futures remain stable at Rs 1,52,608 per 10 grams. Silver prices drop over Rs 3,000 in two days. Markets await the US Federal Reserve decision.
Gold futures for October 2026 delivery held steady at Rs 1,52,608 per 10 grams on the MCX. The price rose by just Rs 20 in the latest session. This stability contrasts with the recent volatility in the precious metals market.
Silver futures for September 2026 delivery fell by Rs 1,011 to Rs 2,31,679 per kg. Over the past two days, silver prices have declined by more than Rs 3,000. The drop reflects broader pressure on non-yielding assets ahead of key monetary policy announcements.
Fed rate hike expectations drive market moves
The US Federal Reserve is scheduled to announce its policy decision on Wednesday. Markets widely expect a 25 basis point rate increase. The benchmark rate would rise to a range of 3.75% to 4.00%.
Higher interest rates increase the opportunity cost of holding gold. This reduces the appeal of bullion for investors. US consumer prices accelerated in August, with underlying inflation recording its biggest increase in four months.
Global prices and technical levels
Spot gold traded at $4,300.96 per ounce, showing little change. US gold futures fell 0.3% to $4,341.10. Spot silver edged up 0.1% to $63.28 an ounce. Platinum and palladium both recorded small declines.
Analysts from GN auto markets/commodities: gold prices identify key support and resistance zones. On the MCX, gold support sits at Rs 1,50,150 to Rs 1,49,400. Resistance is seen between Rs 1,52,400 and Rs 1,53,650. Silver support is located at Rs 2,30,300 to Rs 2,28,000.
Geopolitical risks and treasury yields
Yemen’s Houthis launched new attacks on Saudi Arabia. They are also digging positions near the Red Sea coast. These actions raise concerns over oil supply disruptions. Oil prices rose in response to these geopolitical developments.
US 10-year Treasury yields reached the 5% level on Monday. This is the first time since October 2023 that yields have hit this threshold. Higher yields pressure stock markets by reducing the relative appeal of equities compared to bonds.
