Weaker Oil Prices Support Gold and Silver Amid Interest Rate Hikes
Gold and silver prices on the Multi Commodity Exchange (MCX) opened mixed on Friday, supported by weaker oil prices and a subdued US dollar. Despite this, gold futures for October 2026 delivery declined by Rs 800 to Rs 1,52,171 per 10 grams.
The Federal Reserve raised interest rates on Wednesday and indicated that further hikes could follow in the coming months. Goldman Sachs retained its end-2027 gold price forecast of $5,400 per troy ounce, stating that tighter monetary policy is expected to slow the rally in bullion but is unlikely to derail it.
Manoj Kumar Jain of Prithvi Finmart warned traders to book profits on long positions in gold and silver on every rise in prices. He predicted volatility in crude oil prices and the dollar index, along with the outcome of the Bank of Japan's monetary policy meeting, could keep precious metals volatile.