Bullion Prices Edge Up as Fed Rate Hike Bets Ease

Gold and silver prices on the Multi Commodity Exchange (MCX) saw modest gains on Tuesday, as traders reacted to easing expectations of a Federal Reserve rate hike in October. The shift in rate expectations provided some support to bullion prices, though gains were limited by a firm US dollar and elevated Treasury yields.

At 9:30 a.m., December gold futures were priced at Rs 1,49,212 per 10 grams, while December silver futures stood at Rs 2,25,632 per kilogram. The market-implied probability of an October rate hike had dropped to 21%, according to CME's FedWatch Tool, after weaker-than-expected US job growth data in September.

Silver prices were trading within defined support and resistance zones. International support levels were placed at USD 60 and USD 58 an ounce, with resistance at USD 63 and USD 65. On the MCX, silver support was seen at Rs 2,22,000 and Rs 2,18,000 per kilogram, with resistance at Rs 2,28,000 and Rs 2,32,000. By 1:54 p.m., MCX silver had risen to Rs 2,26,322 per kilogram.

The focus for bullion traders remains on US monetary policy expectations, the dollar, and Treasury yields. The next Federal Open Market Committee meeting is scheduled for October 27-28. In India, the Reserve Bank of India's monetary policy decision on October 7 is also being watched closely by market participants.