Gold and silver prices edged higher on Wednesday, staging a mild rebound after recent sharp declines. The recovery was driven by short covering, a softer US dollar, easing Treasury yields, and growing expectations of a rate cut by the US Federal Reserve.
On the Multi Commodity Exchange (MCX), Gold December futures were trading at Rs 1,19,755 per 10 grams at 9:43 am, a modest rise from Tuesday’s close. Silver December futures were quoted at Rs 1,44,768 per kg, also showing a slight uptick after consecutive sessions of weakness. The gains followed a steep sell-off earlier in the week, which had pushed both metals to their lowest levels in nearly three weeks before bargain hunters returned to the market.
Rahul Kalantri, Vice President of Commodities at Mehta Equities, said that gold and silver prices recovered due to corrective buying and short covering at lower levels. He added that the prospect of a 25-basis-point rate cut by the US Federal Reserve has also lent support to sentiment. Kalantri noted that on the COMEX, gold has immediate support between $3,915 and $3,880 per ounce, with resistance seen around $3,995 to $4,040. Silver, he said, faces support at $46.50–$45.95 and resistance at $47.65–$48.10.
In the domestic market, gold is expected to find support in the Rs 1,19,070–1,18,480 range, while resistance lies between Rs 1,20,450 and Rs 1,21,100. For silver, the key support zone is seen at Rs 1,42,950–1,41,750, with resistance capped around Rs 1,45,240–1,46,180.
Globally, spot gold rose about 0.2% to $3,957.42 per ounce after hitting its lowest in nearly three weeks on Tuesday. US gold futures eased slightly to $3,971.20. The dollar index also softened, and US 10-year bond yields slipped below 4%, both of which boosted bullion prices.
Market participants now await the Federal Reserve’s policy announcement later tonight, where a rate cut is widely anticipated. Beyond the rate decision, traders will closely follow the central bank’s commentary on inflation and the outlook for future monetary easing. Analysts noted that progress in US-China trade discussions has reduced immediate safe-haven demand, limiting the upside for gold. However, they emphasized that underlying fundamentals — including central bank gold purchases and persistent geopolitical risks — continue to provide long-term support for the metal.
