Gold Prices Recover Ahead Of US Inflation Data As Traders Assess Fed Rate Hike Risks And Middle East Tensions
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MCX Gold traded at ₹1,48,482 per 10 grams as investors awaited US inflation data and fresh signals from the Federal Reserve. Experts see a potential move towards ₹1,50,000 if the recovery holds.
Gold prices recovered on Wednesday as investors waited for fresh US inflation data and clues on the Federal Reserve's next interest rate move. The metal's next move will also depend on geopolitical developments, with tensions in the Middle East keeping safe-haven demand in focus.
At around 9:30 am on 14 October, MCX Gold futures were trading at ₹1,48,482 per 10 grams, up 0.02%. MCX Silver futures gained 0.06% to ₹2,19,357 per kg.
In the international market, gold futures rose 0.22% to $4,186.57 per ounce. Silver moved in the opposite direction, slipping 0.11% to $59.463 per ounce.
US Inflation Data In Focus
Gold's recovery comes after a decline in the previous session. Amit Gupta, Senior Research Head at an advisory firm, said investors were waiting for US consumer inflation data to gauge the Federal Reserve's policy direction.
Recent comments from Fed officials have added to the uncertainty. New York Fed President John Williams indicated that another rate hike could be needed this year to bring inflation under control. Fed Governor Christopher Waller, meanwhile, attributed rising bond yields to stronger economic growth rather than an increase in inflation expectations.
Middle East Tensions Support Safe-Haven Demand
Geopolitical risks are another factor for bullion traders. Escalating tensions in the Middle East have supported oil prices and added to demand for gold as a safe-haven investment.
For now, both monetary policy expectations and geopolitical risks remain important influences on precious metals.
Gold Price: Levels To Watch
In the domestic market, MCX Gold could move towards ₹1,50,000 per 10 grams. With futures trading near ₹1,48,500 during the morning session, that level is now a key target for traders watching the recovery.
Silver has its own levels to watch. International prices have support near $58.20 per ounce, with a potential target of $61. In India, MCX Silver could move towards ₹2,24,000 per kg, according to Gupta.
These are technical targets rather than assured outcomes. The direction of US inflation, any change in the Fed's rate outlook and fresh developments in the Middle East could determine whether gold and silver extend their gains.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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