Mumbai, Sep 10: Gold and silver prices moved in different directions in domestic markets on Thursday as investors remained cautious ahead of key US inflation data and the Federal Reserve’s upcoming policy decision.
On the Multi Commodity Exchange (MCX), October gold futures opened lower at Rs 1,53,581 but later recovered to touch an intraday high of Rs 1,54,252. It was trading around Rs 1,54,177, up Rs 414 or 0.27 per cent.
Silver remained volatile during the session. December silver futures touched a high of Rs 2,44,265 before falling to an intraday low of Rs 2,42,726.
US inflation data in focus
Investors are closely watching the latest US inflation figures as they could influence expectations about the Federal Reserve’s interest-rate decision.
The US Producer Price Index data is due on Thursday, followed by Consumer Price Index data on Friday. The numbers are expected to provide fresh signals about the direction of US monetary policy.
Any indication of easing inflation could support expectations of lower interest rates and benefit gold. On the other hand, stronger-than-expected inflation could keep pressure on precious metals by supporting the dollar and US bond yields.
Gold and silver key levels
Analysts see immediate resistance for MCX gold at Rs 1,54,000-1,54,700. A sustained move above this range could take gold towards Rs 1,56,300-1,57,000.
On the downside, support is seen at Rs 1,50,700-1,50,000. A break below this zone could increase selling pressure.
For silver, resistance is placed at Rs 2,45,000-2,46,000, followed by Rs 2,49,000-2,50,000. Support is seen at Rs 2,42,000-2,41,000 and then Rs 2,37,000-2,36,000.
Global markets and crude oil influence bullion
International gold prices also remained firm, supported partly by a weaker US dollar. Gold was trading near $4,400 an ounce in global markets.
Meanwhile, crude oil prices remained above $100 a barrel amid continuing geopolitical tensions and concerns over supply disruptions. Brent crude was around $101 a barrel, while US West Texas Intermediate crude was near $96 a barrel.
Higher oil prices can increase inflation concerns globally and may influence expectations around interest rates.
Investors remain cautious
With the Federal Reserve’s policy meeting scheduled for September 15-16, traders are likely to closely track US inflation, the dollar and bond yields in the coming sessions.
For now, gold and silver are expected to remain volatile as investors wait for clearer signals on US interest rates and the broader global economic outlook.
