Gold and silver prices in India traded lower on the Multi Commodity Exchange (MCX) on Wednesday, amid caution over the US-Iran peace deal and ahead of the US Federal Reserve policy meeting.
MCX gold rate for August futures contracts opened 0.19% lower at ₹1,52,800 per 10 grams level as against its previous close of ₹1,53,091 level. MCX silver price for July futures contracts opened 0.18% higher at ₹2,50,557 per kg as compared to its previous close of ₹2,50,105 level.
At 9:05 AM, MCX gold rate was trading lower by ₹371, or 0.24%, at ₹1,52,720 per 10 grams, while MCX silver price was down by ₹54, or 0.02%, at ₹2,50,051 per kg.
In the international market, gold prices extended gains for a fifth consecutive session as optimism over the US-Iran peace deal eased expectations of US Fed rate hikes, while investors awaited further details on the US-Iran peace deal.
Spot gold price rose 0.3% to $4,341.12 per ounce, trading near a one-week high hit on Monday. US gold futures for August delivery rose 0.2% to $4,361.10. Spot silver prices rose 0.3% to $70.38 per ounce.
US President Donald Trump said that the peace deal with Iran would rule out a nuclear weapon for Tehran, while a US official said it would allow Iran to sell oil once signed.
Meanwhile, crude oil prices slipped near a three-month low on news that Iranian fuel may soon hit global markets, easing inflationary concerns.
Investors now focus on the US Fed policy decision and statement by the new FOMC Chairman Kevin Warsh, due later in the day, with interest rates widely expected to remain unchanged.
According to the CME FedWatch tool, traders anticipate a 59% chance of a US Fed rate hike in December, down from about 70% last week before the US-Iran peace deal announcement.
Gold loses its appeal during high interest rates, as the yellow metal does not yield interest.
Gold Price Outlook
Jigar Trivedi, Senior Research Analyst at IndusInd Securities expects MCX gold prices to remain rangebound and suggests avoiding taking any positions.
“MCX gold price may find support at ₹1,52,000 level, while resistance is placed at ₹1,53,000 level. The yellow metal is expected to remain rangebound,” said Trivedi.
Ponmudi R, CEO of Enrich Money said that the trend in MCX gold reflects cautious price action amid ongoing volatility.
“A sustained move above ₹1,53,500 – ₹1,54,000 could help stabilize prices and extend the recovery toward the ₹1,55,000 – ₹1,55,500 zone. On the downside, a decisive break below the ₹1,52,000 support level could drag prices toward ₹1,51,000 and further toward the ₹1,50,000 mark,” said Ponmudi R.
Overall, he believes the near-term bias remains cautious, with prices needing to sustain above the key ₹1,52,000 support level to maintain stability. However, a sustained break below this level could weaken sentiment and trigger renewed selling pressure, while a move above immediate resistance levels would be required to improve momentum and support a recovery.
Silver Price Outlook
According to Trivedi, MCX silver price is also likely to remain rangebound, with support seen at ₹2,49,000 level, and resistance placed at ₹2,51,000 level.
Ponmudi R said that the MCX silver trend reflects resilient price action despite ongoing volatility.
“On the upside, a sustained move above the ₹2,51,000 – ₹2,52,000 resistance zone could strengthen momentum and trigger a recovery toward the ₹2,54,000 – ₹2,55,000 range. On the downside, a decisive break below the ₹2,48,000 level could intensify selling pressure and drag prices back toward the ₹2,46,500 – ₹2,45,500 support region,” he added.
Overall, he believes the near-term bias has turned cautious, with prices attempting to stabilize above key support levels. A breakout above the immediate ₹2,51,000 – ₹2,52,000 resistance zone is required to confirm strengthening momentum and extend the recovery further, while a break below support could weaken sentiment and trigger corrective pressure.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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