Gold and silver prices exhibited limited movement on Thursday post the latest policy update from the US Federal Reserve. Although gold initially saw a decline on the Multi Commodity Exchange (MCX), it showed a slight recovery throughout the day, indicating a mixed sentiment among investors.
At the start, gold futures on the MCX opened 1.27% lower at Rs 1,19,125 per 10 grams, marking a decrease from the previous close of Rs 1,20,666. Similarly, silver also started weaker, falling by 0.4% to Rs 1,45,498 per kg.
By the day’s end, gold settled slightly lower by 0.15% at Rs 1,20,505 per 10 grams, while silver closed 0.54% higher at Rs 1,46,871 per kg.
Globally, gold prices saw an uptick due to a weaker dollar lending support. Investors are now looking forward to updates on the US–China trade discussions, with optimism surrounding potential positive outcomes from the upcoming talks between Presidents Donald Trump and Xi Jinping.
Following the Federal Reserve’s decision, there was a short-term profit booking triggered as per Rahul Kalantri, VP Commodities at Mehta Equities Ltd. He mentioned that the cautious stance on further easing by the Federal Reserve Chairman led to the pullback in gold and silver prices after an initial strong start.
Kalantri highlighted the ongoing optimism around US–China trade talks impacting the safe-haven demand for gold. Despite the temporary weakness, he noted that gold and silver are still on track for a robust monthly and yearly performance.
In terms of price levels, gold has support at Rs 1,20,070–Rs 1,19,480 and resistance at Rs 1,21,450–Rs 1,22,100 in rupee terms, while silver has support at Rs 1,44,950–Rs 1,43,750 and resistance at Rs 1,47,240–Rs 1,48,180.
Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP Securities, mentioned that gold prices experienced volatility with minor gains at Rs 1,21,130 per 10 grams post the US Fed’s anticipated rate cut.
Trivedi emphasized that geopolitical tensions could continue to keep investors on edge, especially following US President Trump’s hint at potential nuclear weapons testing, raising the level of risk perception.
Looking ahead, experts anticipate gold and silver prices to remain volatile in the upcoming sessions, driven by global factors like trade discussions, interest rate expectations, and geopolitical uncertainties. Traders are advised to exercise caution and monitor developments closely before making any significant trading decisions.