Gold, silver prices rise today: Here we decode why
What's the story
Gold and silver prices have opened higher on the Multi Commodity Exchange (MCX) today, despite the US dollar remaining firm. The move comes as investors await US inflation data for clues on the Federal Reserve's interest-rate outlook. In the domestic market, MCX silver futures for December 2026 delivery rose by ₹540 to ₹2,23,420 per kg while gold futures gained ₹450 to ₹1,49,990 per 10g.
Market dynamics
Gold, silver prices remain volatile
The US dollar has remained near an 18-month high hit in the previous session, making dollar-priced metals costlier for other currency holders.
This has kept gold and silver prices volatile.
Investors are now looking forward to the Consumer Price Index (CPI) data due today and the Producer Price Index (PPI) report scheduled for Thursday.
Inflation impact
Fed's interest rate outlook weighs on gold
A higher-than-expected inflation reading, especially in core inflation, could raise expectations of an October rate hike and lead to another fall in gold prices.
This is because higher interest rates usually make yield-bearing assets more appealing to investors than non-yielding ones like gold.
According to CME's FedWatch tool, traders currently see a 21% chance of a Fed rate hike this month while pricing in an 88% probability of one in December.
Global unrest
Geopolitical tensions in focus
Geopolitical tensions also remain in focus after Saudi Arabia reported a new wave of incoming fire and announced that Riyadh airport will remain closed for now.
The announcement comes days after a deadly missile strike on a departure terminal, claimed by Yemen's Iran-allied Houthis.
These global developments are likely to keep gold and silver prices volatile this week amid fluctuations in crude oil prices and the dollar index.
Trading tips
What should investors do?
Manoj Kumar Jain of Prithvi Finmart has advised investors to keep an eye on gold and silver prices this week.
He has given support and resistance levels for both metals in Tuesday's session.
Jain has also suggested long-term investors to accumulate gold and silver gradually via a systematic investment plan (SIP) during the current decline, while advising traders to wait for market stability before making any moves.