Gold Dips Rs 1,400 as Fed Hike Bets Ease Silver Climbs Rs 1,025
Gold and silver prices moved in opposite directions on the Multi Commodity Exchange (MCX) as investors reacted to weaker-than-expected US economic data. Gold futures for December 2026 delivery dropped by Rs 1,400 to Rs 1,49,050 per 10 grams, while silver futures for the same delivery date climbed Rs 1,025 to Rs 2,26,902 per kg. The shift came after recent US job data reduced expectations of a Federal Reserve rate hike in October, lowering the probability to 22% from 64% a week earlier.
The Fed had raised its benchmark interest rate by 25 basis points last month to a range of 3.75%-4.00%. Meanwhile, geopolitical tensions in the Middle East persisted, with Yemen's Saudi-backed government launching a military campaign against Iran-backed Houthis. Despite this, oil prices slipped due to increased crude exports from the Middle East and G7 nations' oil stock releases.
Internationally, spot gold prices rose 0.4% to $4,158.17 per ounce, while US gold futures for December delivery gained 0.6% to $4,186.40. Silver prices surged 1.7% to $61.40 per ounce. Manoj Kumar Jain of Prithvi Finmart advised caution, noting that gold needs to cross and sustain above $4,255 and silver above $62.40 for further strength. On the MCX, gold and silver hold support at Rs 1,47,700 and Rs 2,18,800, respectively.
In physical markets, standard gold (22 carat) prices in Delhi stood at Rs 1,09,512 per 8 grams, while pure gold (24 carat) was priced at Rs 1,19,456 per 8 grams. Similar prices were observed in Mumbai, Chennai, and Hyderabad. Jain recommended avoiding fresh positions in gold and silver amid uncertainty surrounding US-Iran peace talks.