Gold, silver rise on MCX as Fed rate hike odds drop below 20%
Synopsis
Key Takeaways
Gold and silver futures on the Multi Commodity Exchange (MCX) climbed in early trade on Monday, 19 October, buoyed by firm global cues and easing fears of an imminent US Federal Reserve rate hike. The move tracked gains on COMEX, where both metals pushed higher as remarks by Fed Chair Kevin Warsh in Bangkok pulled the implied probability of an October rate increase below 20 per cent.
MCX Levels: Gold and Silver in Early Trade
MCX gold futures (December contract) were trading at ₹1,48,379 per 10 grams, up ₹461 or 0.31 per cent from the previous close of ₹1,47,918. The yellow metal touched an intraday high of ₹1,48,499, a jump of 0.4 per cent or ₹581, before settling back. Intraday support held near ₹1,48,120.
MCX silver futures (December contract) were trading at ₹2,12,013 per kg, up ₹826 or 0.39 per cent from the prior close of ₹2,11,187. Silver outpaced gold intraday, hitting a high of ₹2,12,750 — a surge of 0.74 per cent or ₹1,563. Both contracts opened higher, with gold at ₹1,48,397 and silver at ₹2,12,319.
Fed Chair Remarks and the Rate-Hike Outlook
According to commodity market experts, Friday's session proved pivotal: remarks by Fed Chair Kevin Warsh during an event in Bangkok eased immediate rate-hike concerns and pushed implied probability of an October increase below 20 per cent. However, analysts cautioned that hotter inflation readings — including the sharpest monthly rise in producer prices in four and a half years — keep a December rate move firmly in play. The next critical test is the October 27-28 FOMC meeting.
Global Benchmarks: COMEX Gold and Silver
COMEX gold opened steady near $4,185 and edged toward $4,200, up 0.50 per cent, reclaiming that psychological level. COMEX silver opened near $57.15 and moved toward $57.80, up 0.89 per cent, outperforming gold on the global platform. Experts noted that a firmer rupee is partially limiting the upside for domestic prices, reducing the benefit of the international recovery.
Key Technical Levels to Watch
For MCX gold, experts place immediate resistance at ₹1,48,600, followed by ₹1,50,000–₹1,50,700. Downside support lies at ₹1,48,000, then ₹1,45,300–₹1,46,000, and deeper at ₹1,43,000–₹1,43,700.
For MCX silver, immediate resistance is seen at ₹2,14,000–₹2,15,000 — a zone that capped gains on Friday — followed by ₹2,19,000–₹2,20,000. 'Immediate support at ₹2,07,000–₹2,08,000, with next support at ₹2,00,000–₹2,02,000,' experts said. With the FOMC meeting approaching and inflation data still running hot, traders are expected to remain cautious in the sessions ahead.