Gold and silver prices fell sharply on the MCX on Thursday. Gold dropped Rs 2,000 to Rs 1,44,196 per 10 grams, while silver fell Rs 5,700 to Rs 2,03,520 per kg. Investors are cautious as they wait for the US Federal Reserve policy meeting next week to see interest rate trends.
Synopsis
Gold and silver prices fell sharply on the MCX on Thursday, with gold declining Rs 2,000 per 10 grams and silver dropping Rs 5,700 per kg. Investors are tracking the US Federal Reserve’s upcoming policy meeting and inflation data, while analysts advise long-term investors to accumulate gradually and traders to await stability.
Gold and silver prices opened sharply lower on the Multi Commodity Exchange (MCX) on Thursday as investors awaited next week's US Federal Reserve policy meeting for clues on the outlook for interest rates, while Middle East tensions continued to simmer.
In the domestic market, MCX silver futures for December 2026 delivery were down by Rs 5,700 to Rs 2,03,520 per kg. Gold futures for December 2026 delivery declined by Rs 2,000 to Rs 1,44,196 per 10 grams.
Geopolitical tensions remained in focus after Saudi air defences intercepted a drone targeting a facility at Saudi Aramco's Shaybah oilfield on Wednesday, killing two people, the energy ministry said. The US State Department has also ordered some diplomats and their family members to leave its missions in Saudi Arabia and plans to withdraw family members from several other US missions in the region, US officials told Reuters.
Investors are closely watching the Fed's October 27-28 policy meeting and next week's Personal Consumption Expenditures (PCE) data, a key inflation gauge monitored by the central bank as it targets a 2% inflation rate.
Nearly all economists polled by Reuters expect the Fed to hold off on raising interest rates this month and deliver a hike in December, as policymakers signal patience despite persistent inflation pressures. Traders see a 16% chance of a rate hike next week but are pricing in a 90% probability of an increase in December, according to CME's FedWatch Tool.
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Higher interest rates generally weigh on gold prices by increasing the opportunity cost of holding bullion, which does not generate interest income.
Meanwhile, the euro zone economy has weathered this year's energy shock better than expected, supported by lower dependence on fossil fuels, stronger fiscal support and a boom in artificial intelligence investment, European Central Bank economists said on Wednesday.
Gold, silver international prices
Spot gold declined 0.6% to $4,115.50 an ounce by 0040 GMT, after touching $4,104.33 on Wednesday, its lowest level since October 15. US gold futures for December delivery fell 0.4% to $4,132.30.
Among other precious metals, spot silver fell 1.1% to $57.33 an ounce, platinum declined 1.1% to $1,609.95, and palladium slipped 0.8% to $1,078.52.
How should you trade gold?
Manoj Kumar Jain of Prithvi Finmart said gold and silver prices are likely to remain volatile this week amid fluctuations in crude oil prices and the dollar index, along with geopolitical tensions. Gold has support at $4,110-4,084 per troy ounce and resistance at $4,174-4,192, while silver has support at $56.60-55.80 and resistance at $58.80-59.50 per troy ounce in today's session.
On the MCX, gold has support at Rs 1,45,400-Rs 1,44,650 and resistance at Rs 1,46,600-Rs 1,47,200, while silver has support at Rs 2,08,000-Rs 2,05,800 and resistance at Rs 2,10,500-Rs 2,12,000. He advised long-term investors to accumulate gold and silver through systematic investment plans (SIPs) during the current market decline, while traders should wait for markets to stabilize before initiating fresh positions.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 1,06,000/8 grams while pure gold (24 carat) prices stand at Rs 1,15,624/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 1,05,880/8 grams while pure gold (24 carat) prices stand at Rs 1,15,504/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 1,05,7880/8 grams while pure gold (24 carat) prices stand at Rs 1,15,504/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 1,05,880/8 grams while pure gold (24carat) prices stand at Rs 1,15,504/8 grams.
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