This evening, the US Federal Reserve will announce its decision regarding interest rates. Global investors are closely watching this announcement, especially gold and silver buyers who have been waiting for this moment. Due to this, gold and silver traded in a narrow price range on Wednesday.
In the international market, December gold futures traded at $4058.85 per ounce, down 0.39%, while December silver futures were at $54.145 per ounce, falling by 0.67%.
In the domestic MCX market, December gold futures stood at 143,708 rupees per 10 grams, showing a decrease of 0.30% (1122 rupees), and December silver futures reached 195,601 rupees per kilogram, declining by 0.57%.
According to independent analyst Anuja Gupta, gold and silver are showing sideways movement as the market awaits the decision on US Federal Reserve policy and guidance on interest rate forecasts. Gupta noted that trading is occurring in a very narrow range as investors await the results of the FOMC meeting. Gold remains above the $4000 per ounce mark, and silver holds above the $52-$53 per ounce zone.
Anuja Gupta also indicated that events related to the conflict in Iran contributed to the recent stability in precious metal prices. Expectations of reduced tension and a slowdown in crude oil price growth have partially reduced the uncertainty affecting market sentiment.
The next key factor that could cause significant changes is the Fed's decision and its commentary on future interest rates. If the Fed keeps rates unchanged, it could provide strong support to gold and silver; however, an increase in interest rates could lead to a sharp drop in gold and silver prices.
Gupta identified important support levels for international gold as $4020 and $3980 per ounce, with resistance levels at $4070 and $4100. On the MCX exchange, support for gold is set at 143,500 rupees per 10 grams, and resistance is at 146,000 rupees. If the level below 143,000 rupees breaks, the price could fall to 142,000 rupees, and lower, to 140,000 rupees.
For international silver, the critical support level is $52 per ounce, while resistance is at $56. On MCX, support for silver is 192,000 rupees per kilogram, and resistance is 203,000 rupees. Gupta predicts mixed dynamics for gold and silver, suggesting that prices may face hurdles at upper levels. The final direction of both metals will depend on both the Fed's decisions and its comments.
