In the international market, December gold futures were trading at $4,022 per ounce, up 0.36%, while December silver futures gained 0.36% to $54 per ounce. On MCX, December gold stood at ₹1,42,304 per 10 grams, up 0.20%, while silver traded at ₹1,95,691 per kilogram, marginally lower by 0.01%.
WHY ARE GOLD AND SILVER PRICES UNDER PRESSURE?
The recovery follows a difficult week for precious metals. Gold declined 4.1%, marking its steepest weekly fall in more than four months, while spot gold slipped below the crucial $4,000-per-ounce mark on Friday.
Rising crude oil prices are among the biggest factors weighing on the outlook. Brent crude gained 6.2% last week amid Middle East tensions. Higher energy costs could keep inflation elevated, potentially limiting the US Federal Reserve’s ability to cut interest rates.
Stronger-than-expected US inflation data and elevated Treasury yields have added to the pressure, making interest-bearing assets more attractive than gold.
FED MEETING, US INFLATION DATA IN FOCUS
Investors are now watching the Federal Reserve’s October 27–28 meeting and US PCE inflation data due October 29 for fresh policy signals. While markets expect interest rates to remain unchanged, the Fed’s comments could influence expectations around a possible December rate cut.
GOLD PRICE OUTLOOK: KEY SUPPORT AND RESISTANCE
According to Sugandha Sachdeva, Founder of SS WealthStreet, the broader outlook for gold and silver remains negative, although a short-term recovery cannot be ruled out.
International gold has support at $3,950, with resistance at $4,220. On MCX, gold support lies between ₹1,40,000 and ₹1,41,000 per 10 grams. A sustained break below ₹1,40,000 could open the door to ₹1,37,000 and potentially ₹1,27,000 if selling intensifies. Resistance stands at ₹1,45,000 and ₹1,48,800.
SILVER PRICE OUTLOOK: LEVELS TO WATCH
For silver, $52 is the key international support, while $62.50 is resistance. On MCX, ₹1,93,000 per kilogram is a crucial support level. A decisive breakdown could drag prices towards ₹1,80,000 and ₹1,73,000, while ₹2,08,000 remains an important resistance.
WILL THE RECOVERY SUSTAIN?
While oversold conditions may trigger a relief rally, the sustainability of the recovery will depend on crude oil prices, the US dollar, inflation data and the Fed’s policy signals. Investors should watch these levels closely, keeping in mind that analyst estimates are not guaranteed price targets.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.