NEW DELHI — Gold and silver prices moved higher on Tuesday as investors positioned cautiously ahead of the U.S. Federal Reserve’s upcoming policy decision, with gains seen across both domestic and global markets.
On the Multi Commodity Exchange (MCX), gold futures for April 2 were trading at Rs 1,57,145 per 10 grams at around 10 a.m., up Rs 1,409, or about 1 percent. During the session, gold touched an intraday low of Rs 1,56,649, reflecting a firm but range-bound trend.
Silver futures for May 5 rose more sharply, climbing 2.4 percent, or Rs 6,367, to Rs 2,62,899 per kilogram. The metal had earlier slipped to an intraday low of Rs 2,58,338.
The gains come ahead of the Federal Reserve’s two-day policy meeting beginning March 17, with the outcome expected on March 18. Markets are closely watching the meeting for signals on interest rates, particularly amid ongoing geopolitical tensions and a sharp rise in crude oil prices that could influence inflation.
Despite the uptick, analysts said both metals are currently in a consolidation phase after reaching record highs in recent sessions.
MCX gold is trading within a range of Rs 1,56,500 to Rs 1,57,500, indicating mild profit booking and consolidation. Analysts noted that as long as prices remain above the Rs 1,55,000 to Rs 1,56,000 support zone, the medium-term bullish outlook remains intact. A sustained breakout above Rs 1,59,000 could push prices toward the Rs 1,63,000 to Rs 1,65,000 range.
For silver, a move above Rs 2,65,000 is seen as a key trigger for further upside, potentially driving prices toward Rs 2,75,000 to Rs 2,80,000. On the downside, support is placed between Rs 2,47,000 and Rs 2,50,000.
Globally, COMEX gold is also undergoing a short-term correction after hitting record highs, with strong support seen in the $4,950 to $5,000 range.
Recent gains in precious metals have largely been fueled by expectations of interest rate cuts. However, analysts caution that if the Federal Reserve signals persistent inflation due to rising crude oil prices, or maintains higher interest rates for longer, it could weigh on gold and silver.
In the previous session, precious metals fell by as much as 2 percent as expectations of near-term rate cuts weakened, even as escalating tensions in West Asia kept overall market sentiment cautious.
Crude oil prices have surged more than 50 percent over the past month amid the ongoing Iran-U.S.-Israel conflict, adding to global inflation concerns and increasing uncertainty around the Fed’s policy path. (Source: IANS)
