New Delhi, March 17 (IANS) Gold and silver prices rose on Tuesday ahead of the US Federal Reserve’s policy meeting, with both precious metals gaining in early trade amid cautious investor sentiment.
On the Multi Commodity Exchange (MCX), gold futures (April 2) were trading at Rs 1,57,145 per 10 grams at around 10 am -- up Rs 1,409 or around 1 per cent. During the session so far, gold touched an intraday low of Rs 1,56,649, indicating a firm but range-bound trend.
Meanwhile, silver contracts for May 5 climbed 2.4 per cent or Rs 6,367 to trade at Rs 2,62,899 per kg. The white metal hit an intraday low of Rs 2,58,338 in early deals.
The rise in precious metals comes ahead of the US Federal Reserve’s two-day policy meeting beginning March 17, with the outcome scheduled for March 18.
The meeting is being closely watched amid ongoing geopolitical tensions and a sharp surge in crude oil prices, which could influence inflation and the Fed’s rate trajectory.
Despite the recent uptick, analysts said both metals are witnessing a phase of consolidation after hitting record highs.
According to analysts, MCX gold is currently hovering in the Rs 1,56,500–Rs 1,57,500 range, indicating consolidation or mild profit booking.
As long as prices hold above the Rs 1,55,000–Rs 1,56,000 support zone, the medium-term bullish outlook remains intact, according to them. A decisive breakout above Rs 1,59,000 could revive upward momentum towards Rs 1,63,000–Rs 1,65,000 levels.
For silver futures, they said that sustained move above Rs 2,65,000 could trigger further upside towards Rs 2,75,000–Rs 2,80,000, while key support is placed at Rs 2,47,000–Rs 2,50,000.
On the global front, COMEX gold is also in a short-term corrective phase after hitting record highs, with strong support seen around the $4,950–$5,000 zone.
Notably, gains in gold and silver in recent months have largely been driven by expectations of interest rate cuts. However, if the Fed signals higher inflation due to rising crude prices or maintains elevated rates, it may weigh on precious metal prices.
In the previous session, precious metals declined up to 2 per cent amid fading hopes of a near-term rate cut, even as escalating West Asia tensions kept market sentiment guarded.
Crude oil prices have surged over 50 per cent in the past month amid the ongoing Iran-US-Israel conflict, adding to global inflation concerns.
--IANS
ag/na