Gold, silver surge up to 1% ahead of US Fed rate decision today
Synopsis
Gold hit ₹1,52,100 and silver touched ₹2,35,988 on the MCX as softer crude oil and easing US yields triggered a broad bullion rally — but the real driver is the US Fed decision due Wednesday, where a widely expected 25-bps rate hike could either validate the move or trigger a sharp reversal.
Key Takeaways
MCX gold (October) hit an intraday high of ₹1,52,100 , up nearly 1 per cent , on 16 September .
MCX silver (December) surged as much as 1.66 per cent to ₹2,35,988 intraday.
International gold futures rose about 1 per cent to $4,380 per ounce .
The US Federal Reserve is widely expected to hike rates by 25 basis points at Wednesday's meeting.
Geopolitical risks — including the US-Iran standoff and Houthi drone activity — are adding to safe-haven demand.
Key resistance for gold is at ₹1,54,000–₹1,54,700 ; support at ₹1,50,700–₹1,50,000 .
Gold and silver prices climbed as much as 1 per cent on Wednesday, 16 September, buoyed by softer crude oil prices and easing US Treasury yields, as investors held their breath ahead of the US Federal Reserve's closely watched policy decision. The rally reflects a broad shift in investor sentiment toward safe-haven and commodity assets as global uncertainty deepens.
Gold Prices: Intraday Movement
MCX gold futures (October contract) were trading at ₹1,51,598 per 10 grams around 10:45 am IST, up ₹789 or 0.52 per cent. The yellow metal hit an intraday high of ₹1,52,100, a gain of nearly 1 per cent or ₹1,291, before paring some gains. The intraday low was recorded at ₹1,51,450, still roughly half a per cent above Tuesday's close.
Analysts noted that MCX gold opened with a mild gap-up but remained capped by its 50-day exponential moving average (EMA). The contract found a floor at the ₹1,50,700–₹1,50,000 support zone. Immediate resistance is pegged at ₹1,54,000–₹1,54,700; a decisive break above that band could open the path toward ₹1,56,300–₹1,57,000. Downside support lies at ₹1,50,700–₹1,50,000 and then ₹1,48,000–₹1,47,300.
Silver Prices: Intraday Movement
MCX silver futures (December contract) surged as much as 1.66 per cent or ₹3,870, hitting an intraday high of ₹2,35,988. At the last count, silver was trading at ₹2,35,079, up ₹2,961 or 1.28 per cent. The white metal touched an intraday low of ₹2,34,540, itself a rise of 1.04 per cent or ₹2,422.
Analysts said MCX silver also opened higher, recovering from the ₹2,30,000 zone. Resistance is seen at ₹2,39,000–₹2,40,000, followed by ₹2,45,000–₹2,46,000. Support is placed at ₹2,34,000–₹2,33,000 and then ₹2,30,000–₹2,29,000.
Global Cues and Fed Expectations
In international markets, US gold futures for December delivery rose about 1 per cent to $4,380 per ounce. Analysts attributed the buying interest in bullion to a pullback in crude oil prices, which eased pressure on the US dollar and Treasury yields — a combination that typically lifts gold's appeal.
The US Federal Reserve is widely expected, according to market experts, to raise interest rates by 25 basis points at its Wednesday meeting. Historically, rate decisions create short-term volatility in bullion markets, with gold often rallying when outcomes align with or fall below market expectations.
Geopolitical Tensions Add to Bullion Demand
Beyond monetary policy, persistent geopolitical risks are providing a floor for bullion prices. The unresolved US-Iran conflict continues to simmer, while reports of a Houthi drone being intercepted by Saudi Arabia and explosions on Iran's Qeshm Island have added fresh layers of market uncertainty. Notably, gold has historically functioned as a crisis hedge, and this latest episode of Middle East tension is reinforcing that role.
All eyes now turn to the Fed's policy statement later on Wednesday, which is expected to set the tone for bullion markets through the remainder of September.
Point of View
The real risk is in the Fed's forward guidance — any hawkish surprise could quickly reverse these gains, while a dovish tilt would send bullion sharply higher. The geopolitical backdrop, spanning the US-Iran standoff to Houthi drone strikes, gives gold a secondary bid that is independent of the rate cycle and harder to unwind. Indian traders should note that at ₹1,52,000-plus, gold is trading near multi-month highs in rupee terms, meaning imported inflation risk for jewellers is real if the rupee softens simultaneously.
NationPress
16 Sept 2026
Frequently Asked Questions
Why are gold and silver prices rising today?
Gold and silver prices climbed up to 1 per cent on 16 September due to softer crude oil prices, lower US Treasury yields, and investor caution ahead of the US Federal Reserve's policy decision. Geopolitical tensions, including the US-Iran conflict and Houthi drone activity, are also supporting safe-haven demand.
What is the current MCX gold price on 16 September?
MCX gold futures (October contract) were trading at around ₹1,51,598 per 10 grams as of 10:45 am IST, after hitting an intraday high of ₹1,52,100. The contract is up approximately 0.52 per cent from the previous close.
What is the US Federal Reserve expected to decide?
The US Federal Reserve is widely expected, according to market experts, to raise interest rates by 25 basis points at its Wednesday meeting. The outcome and the accompanying forward guidance are seen as the key near-term driver for bullion prices globally.
What are the key resistance and support levels for MCX gold?
Immediate resistance for MCX gold is at ₹1,54,000–₹1,54,700; a break above could open the way to ₹1,56,300–₹1,57,000. Support is placed at ₹1,50,700–₹1,50,000, followed by ₹1,48,000–₹1,47,300.
How are geopolitical tensions affecting gold prices?
Ongoing geopolitical risks — including the unresolved US-Iran conflict, a Houthi drone intercepted by Saudi Arabia, and reported explosions on Iran's Qeshm Island — are reinforcing gold's role as a crisis hedge and providing a floor for bullion prices independent of the rate cycle.
