Gold and silver prices experienced a slight recovery on Wednesday after a significant drop earlier in the week. This rebound was supported by short covering, reduced US Treasury yields, and expectations of a rate cut by the US Federal Reserve. On the Multi Commodity Exchange (MCX), Gold December futures were trading at Rs 1,19,755 per 10 grams at 9:43 am, showing a modest increase from the previous day’s close. Similarly, Silver December futures were priced at Rs 1,44,768 per kg, also demonstrating a slight rise following recent declines.
The uptick in prices came after Tuesday’s session, during which both metals reached their lowest points in nearly three weeks before attracting buyers. Additionally, the dollar index weakened, and US 10-year bond yields fell below 4%, further bolstering the market sentiment.
Rahul Kalantri, VP Commodities at Mehta Equities, attributed the recovery in gold and silver to short covering and corrective purchasing at lower levels, alongside positive expectations for a 25 basis points rate cut by the US Federal Reserve. He outlined key support and resistance levels for Gold and Silver on the COMEX and in the domestic market.
Internationally, spot gold rose by approximately 0.2% to $3,957.42 per ounce, recovering from the previous day’s lows, while US gold futures slightly decreased to $3,971.20. Market participants are eagerly anticipating the Federal Reserve’s policy decision later the same day, with a rate cut widely anticipated. Analysts noted that advancements in US-China trade negotiations have lessened safe-haven demand, potentially limiting the upside in the short term. Nonetheless, macroeconomic fundamentals remain favorable for bullion due to sustained central bank purchases and persistent geopolitical uncertainties.