Gold Prices Fall ₹492, Silver Slips ₹2,004 Ahead of US Fed Meeting

Fed Decision Puts Bullion Traders on Guard as Gold and Silver Ease

A lower opening for domestic and international bullion prices leaves traders weighing near-term technical levels against the uncertainty surrounding the US Federal Reserve meeting.

Fed uncertainty keeps bullion in focus

Gold and silver moved lower ahead of the US Federal Reserve meeting, with investors waiting for the policy decision. That timing matters for bullion because changes in interest-rate expectations can influence the appeal of assets that do not pay interest. The meeting is therefore a potential source of direction for traders, although the price action in this update does not establish how the Fed will decide or how markets will respond afterward.

In the domestic market, the MCX December gold contract opened ₹492 below its previous close of ₹1,43,073, at ₹1,42,581 per 10 grams. It later traded at ₹1,42,806, down ₹267 at the time of writing. The benchmark December silver contract opened ₹2,004 lower at ₹1,93,789 per kg, against a previous close of ₹1,95,793; it was later at ₹1,94,700, down ₹1,093.

Global prices echo the domestic weakness

The softer tone was visible on Comex as well. Gold opened at $4,032.80 an ounce, compared with its previous close of $4,038.40, and was trading at $4,027.50 at the time of writing. Silver opened at $54.07 an ounce after closing at $54.34, and later stood at $53.80.

The update also places current prices well below the cited highs reached earlier this year: ₹1,80,779 per 10 grams for MCX gold and ₹4,20,048 per kg for MCX silver. On Comex, the reported highs were $5,586.20 an ounce for gold and $121.79 for silver. Those comparisons show the distance from the peaks, but they do not by themselves indicate where prices will settle next. Domestic and international contracts are quoted in different units, so the levels should not be compared directly without accounting for those differences.

Technical levels mark the near-term trading range

The technical view cited in the update describes both metals as witnessing short covering during the period considered. For gold, prices rose ₹1,049 while open interest declined 1.39% to 15,996 contracts. For silver, prices gained ₹74 as open interest fell 1.15% to 16,683 contracts. These observations refer to that measured period and can coexist with the lower prices reported on Tuesday; they are not a guarantee of a sustained recovery.

For MCX gold, support is identified at ₹1,42,320 and then ₹1,41,560, with resistance at ₹1,43,600. A sustained move above resistance could open a path towards ₹1,44,120, while a break below the first support could expose the lower level. For silver, support stands at ₹1,93,140 and ₹1,90,490; resistance is at ₹1,97,820, above which the cited next level is ₹1,99,840. A fall through first support could add to selling pressure.

Key Highlights

• MCX December gold opened ₹492 lower at ₹1,42,581 per 10 grams.
• MCX December silver opened ₹2,004 lower at ₹1,93,789 per kg.
• Comex gold and silver were also trading below their previous closes.
• Technical support levels are ₹1,42,320 for gold and ₹1,93,140 for silver.
• Both metals face a key near-term catalyst in the Federal Reserve policy meeting.

Investor Note: The cited support and resistance levels are trading references, not assurances of future prices. Investors should account for the potential volatility around the Fed meeting and consider their risk tolerance before acting on short-term moves in gold or silver.