Gold, Silver Edge Up As Fed Keeps Interest Rates Unchanged

Gold and silver prices saw a mild recovery on 30 April, but the upside remained limited as global cues kept traders cautious.

In early trade on 30 April, MCX gold June futures were up roughly 0.27% at ₹1,49,650 per 10 grams, while silver July futures gained close to 1% at ₹2,39,980 per kg. The bounce largely came from bargain buying after the recent fall. Still, the mood in the market is far from bullish.

Globally, gold rose about 0.7% to $4,573 per ounce after slipping to a one-month low in the previous session.

Why Are Gold Prices Moving Up Slightly?

This rebound is due to value buying at lower levels. One of the major reasons for this conservative mood is the recent decision of the Federal Reserve to maintain the same interest rate.

While the interest rate remained the same, the decision did come as a surprise to market participants, given the concerns regarding the increasing risks of inflation raised by policymakers. This has forced investors to revise their expectations regarding future rate cuts.

Currently, there are no prospects for any further rate cuts within this year. In addition, the probability of a rate hike by 2027 has also increased significantly. This becomes important in the context of the positive correlation between gold prices and interest rates.

What Is Keeping Gains In Check?

The political instability in West Asia continues to be an element of uncertainty, with potential for escalation in the region driving investors to become more cautious.

The dollar index is also moving, which can affect the gold price. If the dollar appreciates, gold prices tend to come under pressure.

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What Should Investors Watch Now?

Analysts say volatility is likely to continue in the near term. Key levels are clearly defined, but prices are reacting quickly to global news flow.

As per analysts, gold can find support near $4,470 per troy ounce. It may face resistance around $4,600. Silver has support near $68 and could see resistance closer to $76. On the MCX, gold support is around ₹1,48,000, while resistance is near ₹1,50,500.

For now, experts suggest waiting for clearer signals. With US data and geopolitical risks all in play, the next move in gold and silver may depend more on global headlines than local demand.

Sources:

Mint

The Economic Times