New Delhi, March 17 (NationPress) The prices of gold and silver experienced an increase on Tuesday as traders prepared for the upcoming US Federal Reserve policy meeting. Both precious metals saw gains in early trading amidst a climate of cautious investor sentiment.

On the Multi Commodity Exchange (MCX), gold futures for April 2 were priced at Rs 1,57,145 per 10 grams around 10 am, reflecting a rise of Rs 1,409 or approximately 1 percent. During the trading session, gold reached an intraday low of Rs 1,56,649, suggesting a stable but fluctuating trend.

In addition, silver contracts for May 5 surged by 2.4 percent, equivalent to Rs 6,367, bringing the price to Rs 2,62,899 per kg. The white metal recorded an intraday low of Rs 2,58,338 in initial trading.

The uptick in these precious metals occurs just ahead of the US Federal Reserve's two-day policy meeting commencing March 17, with the outcomes set to be announced on March 18.

This meeting is drawing significant attention due to ongoing geopolitical tensions and a dramatic rise in crude oil prices, both of which could impact inflation and the Fed's interest rate decisions.

Despite the recent climb, analysts indicate that both metals are currently in a consolidation phase after reaching historic highs.

Currently, MCX gold is trading within the range of Rs 1,56,500–Rs 1,57,500, which suggests consolidation or slight profit-taking.

So long as prices remain above the support levels of Rs 1,55,000–Rs 1,56,000, the medium-term positive outlook is expected to persist. A significant breakout above Rs 1,59,000 could potentially reinstate upward momentum towards Rs 1,63,000–Rs 1,65,000.

For silver futures, analysts assert that a sustained movement above Rs 2,65,000 could catalyze further increases towards Rs 2,75,000–Rs 2,80,000, with critical support positioned at Rs 2,47,000–Rs 2,50,000.

On the international stage, COMEX gold is also undergoing a brief corrective phase after setting record highs, with substantial support identified around the $4,950–$5,000 mark.

It is noteworthy that the recent gains in both gold and silver have primarily been fueled by anticipations of interest rate reductions. Nevertheless, should the Fed indicate an increase in inflation due to rising crude prices or maintain high interest rates, it could negatively affect precious metal prices.

In the previous trading session, precious metals saw declines of up to 2 percent due to diminishing expectations for a near-term rate cut, even as escalating tensions in West Asia kept market sentiments cautious.

Crude oil prices have surged more than 50 percent within the last month amid the ongoing Iran-US-Israel conflict, raising global inflation concerns.