Gold prices moved higher on Wednesday on the Multi Commodity Exchange (MCX), tracking global bullion gains ahead of the US Federal Reserve’s policy outcome. Heightened geopolitical tensions in the Middle East and expectations of a Fed rate cut supported the yellow metal’s uptrend.
At the opening, MCX gold futures for December delivery traded flat at Rs 1,19,647 per 10 grams, compared to the previous close of Rs 1,19,646. Meanwhile, MCX silver prices opened higher at Rs 1,44,761 per kg, up from Rs 1,44,342 in the previous session.
By 9:08 AM, gold futures had gained Rs 401 (0.34%) to Rs 1,20,047 per 10 grams, while silver rose Rs 989 (0.69%) to Rs 1,45,331 per kg.
Global Market Trends
In international markets, spot gold rose 0.2% to $3,957.42 per ounce, recovering from its lowest level since October 7. US gold futures for December delivery slipped slightly by 0.3% to $3,971.20 per ounce.
Gold prices strengthened as investors awaited a widely anticipated quarter-point interest rate cut by the US Federal Reserve, while easing US-China trade tensions limited further upside. The European Central Bank (ECB) is expected to maintain its current interest rates during its upcoming meeting.
Analyst Insights
“Gold prices have paused their recent decline as markets await the Federal Reserve’s policy decision later today. Additionally, optimism over potential progress in US–China trade negotiations could reduce safe-haven demand,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
Gold prices have surged about 52% year-to-date, reaching a record high of $4,381.21 on October 20, driven by geopolitical uncertainty, central bank buying, and expectations of lower global interest rates, according to Reuters.
Renewed conflict in the Middle East also boosted gold’s safe-haven appeal after Israel launched airstrikes in Gaza following ceasefire violations by Hamas.
Technical Outlook
According to Jigar Trivedi, MCX gold for December expiry could rise towards Rs 1,20,500 per 10 grams, with strong support at Rs 1,19,000 on the downside.
Rahul Kalantri, VP of Commodities at Mehta Equities, noted that gold has key support levels at $3,915–$3,880, with resistance between $3,995–$4,040.
For silver, support is seen at $46.50–$45.95, and resistance at $47.65–$48.10.
On the MCX, Kalantri identified support for gold at Rs 1,19,070–Rs 1,18,480, and resistance at Rs 1,20,450–Rs 1,21,100.
For silver, support lies at Rs 1,42,950–Rs 1,41,750, with resistance between Rs 1,45,240–Rs 1,46,180.
Summary
Gold prices are holding firm ahead of the US Fed’s policy announcement, supported by geopolitical risks and a likely rate cut. Market participants are watching global developments closely, with key resistance near Rs 1.20 lakh likely to determine short-term momentum.
