Gold and Silver Prices Rise Ahead of US Fed Decision | Check Today’s MCX Rates

Gold and silver prices registered a modest rebound on Wednesday, buoyed by short covering, softer US bond yields, and renewed investor optimism ahead of the US Federal Reserve’s interest rate decision.

On the Multi Commodity Exchange (MCX), Gold December futures traded at ₹1,19,755 per 10 grams at 9:43 am, marking a mild increase from Tuesday’s close. Silver December futures climbed to ₹1,44,768 per kg, reflecting a slight recovery after recent losses.

The uptrend came after both precious metals touched their three-week lows during Tuesday’s session, triggering buying interest at lower price levels. A weakening US dollar index and a drop in 10-year Treasury yields below 4% further boosted sentiment for bullion investors.

Analysts See Technical Support and Short-Covering Rally

According to Rahul Kalantri, VP of Commodities at Mehta Equities, the recovery in gold and silver is primarily driven by short covering and corrective buying. He added that expectations of a 25-basis-point rate cut by the US Federal Reserve have provided additional tailwinds to the market.

“Gold has support at $3915–3880 and resistance near $3995–4040 on the COMEX. For silver, support is at $46.50–45.95, with resistance at $47.65–48.10,” Kalantri said.

In the domestic market, gold is expected to find support near ₹1,19,070–1,18,480, while resistance lies between ₹1,20,450–1,21,100. Silver, on the other hand, has support at ₹1,42,950–1,41,750 and resistance between ₹1,45,240–1,46,180, according to Kalantri’s analysis.

Global Market Outlook

In international markets, spot gold rose 0.2% to $3,957.42 per ounce, rebounding from previous lows, while US gold futures traded slightly lower at $3,971.20 per ounce.

Market participants are closely eyeing the outcome of the Federal Reserve’s policy meeting later tonight. While a rate cut is broadly anticipated, traders remain cautious about the central bank’s forward guidance on inflation and monetary easing in the months ahead.

Analysts also noted that progress in US-China trade negotiations has reduced safe-haven demand, capping major price rallies. However, the broader outlook for gold remains positive, supported by central bank purchases, geopolitical uncertainties, and slower global economic growth.

Outlook

With the Fed’s decision looming, volatility is expected to remain elevated in the short term. A dovish stance from the US central bank could drive further gains in bullion, while any hint of policy tightening might trigger short-term corrections.

For now, traders are watching the $4,000 mark as the next key resistance for gold, with silver likely to test ₹1,46,000 if global cues stay supportive.