A decline is observed after a significant recovery in precious metal prices. On the MCX exchange, the price of gold reached 1.47 lakh per 10 grams. Meanwhile, silver continues to show weakness; on Wednesday, gold fell by approximately 600 rupees, and silver prices dropped by almost 2000 rupees.
Experts suggest that events in the United States are the reason for this downturn. Investors dealing in gold and silver are closely monitoring inflation data in America, the interest rates of the Federal Reserve, and the geopolitical situation. Analysts note investors' close attention to these factors.
According to Amit Gupta, senior researcher at Keadia Advisory, the fall after gold's rise occurred when investors are assessing the monetary policy of the US Federal Bank and inflation data in America. Federal Reserve Chairman John Williams indicated that another rate hike may be necessary to control inflation. Furthermore, Federal Reserve Governor Christopher Waller stated that bond yields indicate a stable economy.
Gupta predicts that the probability of a rate hike in October is 23%, while in December this chance is estimated at 88%. These forecasts are based on market expectations, not official statements from the Fed. At the same time, rising oil prices due to the Middle East conflict have provided support for gold at low levels.
On Wednesday, the gold futures traded at $4,186.57 per ounce in the international market, while silver futures fell by 0.11% to $59.463 per ounce. From a technical support perspective, gold may test the $4,200 per ounce level if it breaks above the $4,150 mark. For the domestic MCX market, the target level for gold is set at ₹1,50,000 per 10 grams.
In the international market, support for silver is at $58.20 per ounce, with potential to reach $61 per ounce. On MCX, silver could reach ₹2,24,000 per kilogram. Currently, the movement of gold and silver is determined by inflation data, signals from the Federal Reserve, and geopolitical events. It should be noted that these levels are market estimates, not guarantees of growth.