Gold and Silver Await Fed Cues as Prices Consolidate
Gold and silver prices remained largely stable on Tuesday, October 6, as investors closely monitored US interest-rate expectations, the dollar, and bond yields for direction. On the MCX, gold futures for December delivery were trading around ₹1,49,212 per 10 grams, while silver futures stood at ₹2,25,632 per kg. Internationally, gold was near $1,954.65 per ounce, and silver was around $20.99 per ounce, with both metals seeing limited movement.
According to Anuj Gupta, a Research Analyst, gold and silver are currently trading in a range-bound manner, awaiting fresh cues from the upcoming US monetary policy decisions. The next FOMC meeting is scheduled for October 27-28. Gupta noted that profit booking at higher levels last week has kept prices under pressure, leading to a consolidation phase.
One of the key factors influencing bullion traders is the outlook for US interest rates. Gupta pointed out that expectations of a rate hike have dropped significantly, now standing at around 23%. This lower expectation could provide some support to precious metals. The market is also watching the US dollar index, which has moved below 102, and bond yields for further guidance.
Gupta identified important support and resistance levels for both gold and silver. For international gold, key support levels are $1,910 and $1,880, while resistance levels are $1,960 and $1,990. In the domestic market, support levels are ₹1.48 lakh and ₹1.47 lakh, with resistance at ₹1,50,000 and ₹1,50,800. For silver, international support levels are $20 and $18, with resistance at $23 and $25. Domestically, support levels are ₹2.22 lakh and ₹2.18 lakh, with resistance at ₹2,28,000 and ₹2,32,000.