Gold, Silver Trade Mixed Ahead of US Fed Decision; West Asia Tensions Keep Bullion Supported | Commodity Markets Today

Gold and silver traded in a narrow range on Wednesday morning as investors avoided taking aggressive positions ahead of the US Federal Reserve's monetary policy announcement, due later in the day.

On the Multi Commodity Exchange (MCX), gold August futures slipped 0.21% to ₹1,41,331 per 10 grams, while silver September futures edged 0.34% higher to ₹2,16,577 per kg in early trade.

Globally, bullion markets remained cautious ahead of the Fed's policy statement and comments from Chair Kevin Warsh, with investors looking for clues on the future path of US interest rates. Markets largely expect the central bank to leave rates unchanged, although expectations of another rate hike later this year continue to influence sentiment.

Why Gold Prices Are Trading Mixed

Gold came under pressure after the US dollar climbed to a one-month high on expectations that the Federal Reserve could retain a hawkish stance despite softer inflation readings. Higher interest rates increase the opportunity cost of holding non-yielding assets such as gold, limiting fresh buying interest.

According to Kotak Neo Commodity Research, spot gold settled below $4,030 an ounce, while silver closed below $57.5 an ounce in the previous session as investors turned cautious ahead of the Fed meeting. The report noted that bullion surrendered earlier gains amid a stronger dollar, although softer Treasury yields and weaker US consumer confidence later helped limit losses.

US Fed Policy Decision in Focus

The Federal Reserve's policy announcement is scheduled for later tonight, followed by Chair Kevin Warsh's press conference.

While the policy rate is widely expected to remain unchanged, investors will closely monitor the central bank's assessment of inflation and economic growth for indications on future rate moves. Markets are also awaiting upcoming US economic data, including GDP and inflation readings, which could shape expectations for monetary policy in the coming months.

West Asia Tensions Continue to Support Bullion

Although expectations of tighter monetary policy have capped gains in precious metals, renewed geopolitical tensions in West Asia have helped prevent a sharper decline.

According to the research firm, fresh tensions resurfaced after US forces intercepted an Iranian ballistic missile attack, pushing crude oil prices higher and reviving safe-haven demand. However, the report added that any sustained upside in bullion is likely to remain limited until the outcome of the Fed meeting becomes clear.

Looking for today's city-wise bullion prices? Check our latest Gold Rate Today and Silver Rate Today pages.

Gold Price Outlook: Key MCX Levels to Watch

According to Kotak Neo Research, MCX Gold (August) is expected to trade with a sideways bias in the ₹1,39,940-₹1,42,360 range, while MCX Silver (September) is likely to remain sideways between ₹2,10,320 and ₹2,25,090.

From a technical perspective, immediate support for MCX Gold August is placed at ₹1,40,822, followed by ₹1,40,416 and ₹1,39,100. Resistance is seen at ₹1,42,138, ₹1,42,544 and ₹1,43,860. For MCX Silver September, support is placed at ₹2,14,881, ₹2,13,704 and ₹2,09,892, while resistance is seen at ₹2,18,693, ₹2,19,870 and ₹2,23,682.

Also Read - Adani Ports Eyes Controlling Stake In Associated British Ports In Potential £10 Billion Deal