New Delhi, Sep 16: Gold and silver prices moved higher in the domestic futures market on Wednesday as investors remained focused on the upcoming US Federal Reserve policy decision.
On the Multi Commodity Exchange (MCX), October gold futures rose around 0.57 per cent to ₹1,51,667 per 10 grams in early trade. December silver contracts gained 1.31 per cent to ₹2,35,159 per kg.
The movement in precious metals came as crude oil prices eased and US bond yields softened. These factors provided some support to gold even as a stronger dollar and uncertainty over the global interest-rate outlook continued to influence market sentiment.
Internationally, US gold futures for December delivery climbed around 1.3 per cent to $4,381.65 per troy ounce. The decline in crude oil prices helped limit gains in the US dollar, while the yield on the 10-year US Treasury bond moved below 4.9 per cent, improving the appeal of gold.
Investors are now closely watching the Federal Reserve’s policy decision for indications about the future direction of US interest rates. Market expectations have centred on a possible 25-basis-point rate adjustment, although the Fed’s guidance on future policy is likely to be equally important for financial and commodity markets.
Gold prices are also being influenced by continuing geopolitical tensions and developments in global energy markets. Any fresh escalation could increase demand for safe-haven assets, while changes in crude oil prices and currency movements could affect the direction of precious metals.
Market analysts are also keeping a close watch on technical levels in the domestic gold market. According to market analysis, MCX gold has been trading below key short- and medium-term moving averages, indicating continued volatility in the near term.
The Federal Reserve’s decision and its assessment of inflation, economic growth and future interest rates are expected to remain the key triggers for gold and silver prices in the coming sessions.
For Indian markets, movements in international bullion prices, the rupee-dollar exchange rate, crude oil and global interest rates will remain important factors in determining the direction of domestic precious metal prices.
