Dollar and Bond Yields Rise, Gold and Silver Prices Tread Water Ahead of Fed Decision
MCX gold and silver prices were rangebound on Tuesday amid a rise in the US dollar and bond yields ahead of the US Federal Reserve's policy decision. The MCX gold October futures rose by 0.15% to ₹1,51,450 per 10 grams, while MCX silver December futures fell by 0.09% to ₹2,32,480 per kg.
The dollar index climbed by 0.20%, and 10-year bond yields topped 5% for the first time since October 2023, eroding gold's safe-haven appeal. The rise in the dollar and bond yields can be attributed to expectations of rate hikes by the US Federal Reserve as inflation concerns continue to grow.
Manoj Kumar Jain of Prithvifinmart Commodity Research said MCX gold has support at ₹1,50,150 and ₹1,49,400 and resistance is at ₹1,52,400 and ₹1,53,650, while silver has support at ₹2,30,300 and ₹2,28,000 and resistance is at ₹2,36,000 and ₹2,38,800.
Jain suggested long-term investors could accumulate gold and silver in a staggered way during this market fall but traders must wait for the FOMC meeting outcomes to take fresh positions.