MCX Gold, Silver Trade Higher Ahead of RBI MPC Decision; Check Technical Outlook | Commodity Markets Today

Gold and silver prices traded higher on the Multi Commodity Exchange (MCX) on Wednesday as a weaker US dollar supported bullion, while investors awaited the Reserve Bank of India's monetary policy decision later in the day.

MCX gold October futures rose 0.56% to ₹1,45,110 per 10 grams, while silver September futures gained nearly 1% to ₹2,23,690 per kg around 9:10 am.

In the international market, COMEX gold traded around $4,152 an ounce, while silver was slightly lower after recent gains. A softer US dollar and lower crude oil prices helped support bullion prices, although traders largely stayed on the sidelines ahead of key macroeconomic events.

Why Are Gold and Silver Prices Rising Today?

The US dollar index eased to 99.77, making dollar-denominated bullion cheaper for overseas buyers.

Crude oil prices also declined, with Brent crude trading near $78 a barrel, after optimism over diplomatic efforts involving the United States, Iran and Oman eased concerns over supply disruptions through the Strait of Hormuz. Lower oil prices have reduced immediate inflation worries, providing support to precious metals.

Gold also continued to draw support from safe-haven demand as uncertainty over developments in West Asia persisted. While markets are watching reports around possible US-Iran talks, there is still no clarity on how quickly regional tensions may ease.

RBI Policy, US Jobs Data in Focus

The Reserve Bank of India's Monetary Policy Committee is widely expected to keep the repo rate unchanged at 5.25%, with Governor Sanjay Malhotra scheduled to announce the policy decision later in the day.

While the interest rate decision is largely priced in, investors will watch the RBI's commentary on inflation, liquidity and the broader economic outlook.

Globally, attention has shifted to the US ADP private payrolls report due later on Wednesday and the non-farm payrolls data scheduled for Friday. The labour market data is expected to provide fresh clues on the Federal Reserve's next policy move after the US central bank left interest rates unchanged at its latest meeting.

Gold Market Awaits Fresh Direction

The RBI's policy commentary and upcoming US labour market data are expected to set the near-term direction for bullion prices.

A softer-than-expected reading on US employment could strengthen expectations of lower interest rates and support gold, while stronger economic data may lift the US dollar and limit gains in precious metals.

Markets will also continue to monitor developments in West Asia, as any escalation in geopolitical tensions could revive demand for safe-haven assets such as gold.

MCX Gold & Silver Technical Outlook

According to Kotak Neo Commodity Research, bullion continues to find support from a softer US dollar and expectations that central banks will maintain a cautious policy stance. At the same time, traders are awaiting fresh macroeconomic data before taking larger positions.

From a technical perspective, MCX Gold (October) is expected to trade with a sideways-to-bullish bias in the ₹1,44,220-₹1,46,660 range. MCX Silver (September) is also seen trading with a sideways-to-bullish bias in the ₹2,16,500-₹2,22,632 range.

The research firm expects prices to remain range-bound in the near term, with movements likely to be driven by the RBI's policy commentary, US economic data and developments in the Middle East.

Also Read - Crude Oil Prices Extend Losses as US-Iran Talks Raise Hopes of Hormuz Reopening | Commodity Market Today