Gold and silver prices rose on Thursday, October 15, recovering from recent losses as a weaker US dollar lent support to precious metals. However, uncertainty over the US Federal Reserve's next interest rate move continued to weigh on sentiment after stronger-than-expected inflation data.
On the Multi Commodity Exchange of India, December gold futures rose to Rs 1,47,881 per 10 grams, gaining Rs 2,033 from the previous close of Rs 1,45,848. At around 1:58 p.m., the contract was trading at Rs 1,47,836, up 1.36% from the previous close; however, the yellow metal remained below the crucial Rs 1,48,000 mark.
Meanwhile, December silver futures climbed to Rs 2,11,398 per kg, rising Rs 3,060 from the previous close of Rs 2,08,338. At 2 p.m., silver was trading at Rs 2,11,336 per kg, up 1.44% against the earlier close.
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Why Are Gold And Silver Prices Rising Today?
International gold prices recovered as the US dollar retreated after touching an 18-month high. A weaker dollar makes precious metals priced in the US currency more affordable for buyers using other currencies, supporting demand.
Gold had fallen to a one-week low in the previous session as stronger US consumer price inflation data fuelled expectations of a possible Federal Reserve interest rate hike this month. The inflation reading raised concerns that US interest rates could remain elevated for longer, limiting the appeal of non-interest-bearing assets such as gold.
However, the dollar's retreat and changing expectations around the Federal Reserve's next policy move helped precious metals recover. The direction of US Treasury yields and further signals from policymakers remain important factors for gold and silver prices.
Mary Daly, Fed President in San Francisco, commented that the US central bank will probably need to increase short-term interest rates further; however, she also highlighted that there is no immediate need for the hike in this upcoming October Fed session.
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What Should Traders Watch Next?
Traders are looking for fresh cues from US producer price inflation data, retail sales figures, and comments from Federal Reserve officials. These developments could influence expectations for interest rates, Treasury yields, and the dollar, shaping the near-term direction of precious metals.
For domestic traders, the sustainability of Thursday's rebound will depend on whether the dollar continues to weaken or renewed concerns about US inflation and interest rates put pressure on gold and silver again.
Also Read: Gold Rate Today: Check 24K, 22K Gold Prices In Mumbai, Delhi, Chennai, Kolkata, Bengaluru On Oct 15
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