Gold Rises Amid Rate Hike Expectations
Gold and silver prices surged on the Multi Commodity Exchange (MCX) on Wednesday, despite expectations of a rate hike in the US Federal Reserve's decision. The MCX silver futures for September 2026 delivery rose Rs 4,000 to Rs 2,35,988 per kg, while gold futures for October 2026 delivery increased by Rs 1,300 to Rs 1,52,100 per 10 grams.
The market is pricing in a 92.4% probability of at least a 25-basis-point rate hike, according to CME FedWatch. A hawkish Fed could further pull gold down, while any dovish messaging may ease rate-hike bets and help the metal recover.
Manoj Kumar Jain of Prithvi Finmart expects gold and silver prices to remain volatile this week amid fluctuations in crude oil prices and the dollar index. He sees gold finding support at $4,310-$4,264 per troy ounce and resistance at $4,355-$4,400.