Gold and silver prices eased in domestic futures trading on Thursday after opening on a firmer note, as investors remained cautious ahead of key US inflation data that could influence expectations around the Federal Reserve’s interest-rate path. Despite the intraday weakness, the broader outlook for both precious metals remains constructive, with technical indicators continuing to point towards an upward trend.
On the Multi Commodity Exchange (MCX), the benchmark October gold futures contract opened at ₹1,55,071 per 10 grams, gaining ₹189 from the previous close of ₹1,54,882. The contract subsequently pared those gains and was trading at ₹1,54,712, down ₹170, during morning trade. Gold touched an intraday high of ₹1,55,145 and a low of ₹1,54,694.
Silver followed a similar pattern. The benchmark September silver futures contract opened at ₹2,38,000 per kg, compared with the previous close of ₹2,37,835. It later slipped to ₹2,36,825, down ₹1,010, after touching an intraday high of ₹2,38,000.
The early decline has not, however, changed the larger picture for bullion. Investment demand and central bank buying continue to provide support to gold, while expectations of a softer US monetary policy are helping keep precious metals attractive. Global gold prices have remained above the $4,450-per-ounce mark, reinforcing the strength seen in the international bullion market.
In the international market, Comex gold opened at $4,468.80 per ounce against its previous close of $4,467.50 and was last quoted around $4,465.10, down $2.40. Comex silver opened at $65.45 per ounce and was trading around $65.59, down marginally from the previous close of $65.70.
The immediate focus for traders is US inflation data. The latest consumer price developments are important because they can influence expectations about the Federal Reserve’s next policy moves. A softer-than-expected inflation reading could strengthen expectations of lower interest rates, which would generally support non-yielding assets such as gold. Conversely, stronger inflation could push the US dollar and bond yields higher, potentially triggering some profit booking in bullion.
Domestic spot prices also remained elevated. According to Moneycontrol, domestic spot gold had closed at ₹1,52,939 per 10 grams on Wednesday, while silver settled at ₹2,38,008 per kg. International spot gold was around $4,466.40 per ounce and silver at $65.47 during morning trade on Thursday.
For retail buyers, the elevated market continues to translate into high gold rates across major Indian cities. Prices for 24-carat, 22-carat and 18-carat gold vary between markets because of local taxes, jewellery margins and other charges. The final price paid by consumers can also differ significantly from the indicative bullion rate because jewellery purchases include making charges and applicable taxes.
The latest movement is particularly significant because gold has already delivered a strong run this month. Gold rates in India have moved sharply higher from early-August levels, keeping consumers and investors alert to the possibility of further volatility. For those planning jewellery purchases, even a modest movement in the underlying gold rate can have a noticeable impact on the final bill when larger quantities are involved.
The technical picture, meanwhile, remains supportive. According to Abhilash Koikkara, Head of Forex & Commodities at Nuvama Professional Clients Group, MCX gold has broken out of a consolidation phase and a descending triangle formation, signalling a positive near-term trend. The ₹1,49,000 level is identified as an important support zone, while ₹1,60,000 is seen as the immediate resistance. Gold was quoted at around ₹1,54,500 for the technical outlook, with ₹1,49,000 as the suggested stop-loss level.
Silver is also showing a positive technical setup, although its outlook is somewhat more sideways-to-positive compared with gold. The metal has broken out of a descending triangle formation, with ₹2,30,000 per kg identified as a key support level. Immediate resistance is placed around ₹2,40,000, while a sustained move above that level could open the way towards ₹2,51,000.
The technical assessment suggests that investors may continue to favour buying on dips rather than aggressively chasing short-term rallies. For gold, holding above ₹1,55,000 on a daily basis would strengthen the case for a move towards higher levels, while a sustained break below ₹1,49,000 could weaken the bullish structure. For silver, maintaining levels above ₹2,30,000 remains important for the broader uptrend.
The contrasting signals, short-term profit booking and a positive medium-term trend, mean volatility could remain a feature of the gold and silver market. Currency movements, US Treasury yields, Federal Reserve expectations, central bank purchases and geopolitical developments will continue to influence prices.