Gold, Silver Slip on MCX Ahead of Fed Meeting

Gold and silver prices declined on the MCX in early Thursday trade as investors booked profits after the recent surge. The movement in precious metals comes ahead of next month’s crucial US Federal Reserve monetary policy meeting, which continues to shape market sentiment.

During the morning session, MCX Gold December futures slipped 0.36% to ₹1,25,480 per 10 grams, while MCX Silver December futures fell 0.20% to ₹1,60,950 per kg.

Analysts note that international gold prices currently hold support at $4130–4095 and face resistance at $4195–4225. Silver shows support at $52.65–52.35, with resistance levels at $53.65–53.90.

In the Indian market, gold has support at ₹1,25,350–1,24,780 and resistance at ₹1,26,650–1,27,100. Silver support levels are at ₹1,60,350–1,59,600, with resistance at ₹1,62,110–1,63,000.

The Federal Open Market Committee will meet on December 9–10 at a time when the US job market appears to be softening, and inflation remains persistent. Recent data has increased speculation about a potential December rate cut. US retail sales grew only 0.2% in September, down from 0.6% in August, while consumer confidence slid to its lowest level since April. The Producer Price Index rose 0.3%, aligning with forecasts.

A slight drop in the US dollar index, down 0.10%, cushioned the fall in gold prices by making the metal cheaper for overseas buyers.

Experts believe gold and silver may remain volatile due to currency movements and upcoming economic data from Europe. Market expectations of a possible Fed rate cut, along with mixed US indicators and softer comments from Fed officials, continue to influence sentiment.

[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]