Gold and silver prices experienced slight increases on Wednesday, October 29, as investors anticipated the US Federal Reserve’s policy decision later in the day. Market sentiment improved after a period of volatility earlier in the week.
Gold December futures on the Multi Commodity Exchange (MCX) rose by 0.02% to Rs 1,19,675 per 10 grams at 10:20 am, while silver December contracts saw a gain of 0.39% to reach Rs 1,44,900 per kg.
At the close of trading, gold settled at Rs 1,21,160 per 10 grams, marking a 1.27% increase, and silver finished at Rs 1,46,952 per kg, up by 1.81%.
Following a significant drop on Monday, both gold and silver began Tuesday’s session under pressure and hit three-week lows. However, there was a turnaround in the market later in the day.
Rahul Kalantri, VP Commodities at Mehta Equities Ltd, noted that on Tuesday, gold and silver prices closed with mixed results. The recovery was driven by short covering, corrective buying, and a weaker dollar index, coupled with US 10-year bond yields falling below 4%.
Market participants globally are closely monitoring the Federal Reserve’s policy meeting, with expectations of a 25-basis-point rate cut to bolster the US job market. The hopes for a rate cut have provided support for gold and silver prices.
In terms of technical levels, gold has support levels at $3,915–$3,880 and resistance levels at $3,995–$4,040 in global markets. Silver has support at $46.50–$45.95 and resistance at $47.65–$48.10. In Indian Rupees, gold has support at Rs 1,19,070–1,18,480 and resistance at Rs 1,20,450–1,21,100. Silver has support at Rs 1,42,950–1,41,750, with resistance at Rs 1,45,240–1,46,180.
Experts advise investors to exercise caution but maintain optimism in the short term. The future direction of gold and silver prices will largely hinge on the Fed’s decision and policy outlook. Buying on market dips is recommended as prices are expected to remain range-bound until clearer signals emerge from the Fed meeting.
Long-term investors are encouraged to hold positions, anticipating potential upside in precious metals if a rate cut occurs in the following weeks. It is advisable to consult with a qualified broker or financial advisor before making any investment decisions.