Gold, Silver In Focus Ahead Of Big Fed Decision: How The Metals Are Seen Moving
The rising odds of a Fed rate cut augur well for the prices of gold and silver.
The precious metal market will have their eyes fixed on the interest rate decision to be announced by the US Federal Reserve on Wednesday. Gold and silver, seen as top hedge against inflation, usually see movement in prices on the Fed's rate action and its projection for the period ahead.
With the big Fed day upon us, and with the likelihood of a rate cut looking stronger, gold and silver prices are expected to edge higher, say analysts. There is an 89.4% probability of benchmark rates being slashed by 25 basis points, according to CME FedWatch.
Notably, the rising odds of a Fed rate cut augur well for the prices of gold and silver, as a low-interest rate environment makes non-yielding assets like precious metals more attractive for investment.
In a note released on Tuesday—a day before the Fed decision—Geojit Investment analysts saw gold futures for February 2026 seeing an immediate resistance at Rs 1,30,625 per 10 gram on India's Multi Commodity Exchange. If there is a further uptick in prices, the yellow metal may rise to Rs 1,31,288, and beyond that, the resistance will lie at Rs 1,31,812.
For silver March futures, the analysts see immediate resistance at 1,83,141 per kg. In case of a further upside, the resistance may shift to Rs 1,84,540 and Rs 1,85,785.
As of 6:15 pm (IST) on Tuesday, the futures of gold were trading flat at Rs 129,935 per 10 gram, and silver was up 0.75% at Rs 183,165 per kg.
In the global markets, gold futures for December 2025 delivery have immediate resistance level at $4,207.3 an ounce. In case of a further upside, futures will rise up to $4,231.7, and beyond that to $4,247.6.
Currently, the US spot gold is trading at $4,203.63 an ounce.
The Flip Side
If gold prices on MCX were to move downwards, then the immediate support level is seen at Rs 1,29,438 per 10 grams on the MCX. If there is further downtick, support levels can go as low as Rs 1,28,914 and Rs 1,28,251.
As far as the global markets are concerned, immediate support level for Gold Dec 2025 futures is seen at $4,167 an ounce and any further downside will drag support levels to $4151.1 and $4126.7.
Similarly, silver finds immediate support at Rs 1,80,497 per kg on the MCX. Any further decline will lead the support levels to go as low as Rs 1,79,252 and Rs 177853.
