Gold Prices Surge Rs 6,400/10g and Silver Rises Rs 11,000/kg Amidst Ongoing Oil Slump—Is a Major Rally on the Horizon?
Gold and silver prices have shown significant upward momentum for a third consecutive session on the MCX, buoyed by a weaker U.S. dollar, declining Treasury yields, and easing oil prices. Gold futures for October 2026 settled at Rs 1,49,250 per 10 grams, marking an increase of Rs 757, while silver futures for September 2026 rose by Rs 228 to Rs 2,27,812 per kg. This shift indicates a notable recovery, with gold appreciating by 5.2% and silver by 4.4% over the past three sessions. The positive market sentiment is largely attributed to the potential diplomatic resolution regarding tensions in the Middle East, particularly between Iran and the U.S., which has alleviated concerns over oil supply disruptions.
The foreign spot market reflects this bullish sentiment, with spot gold climbing to $4,133.83 per ounce, its highest level in two weeks. Meanwhile, silver recorded a modest increase to $62.16 per ounce. The broader context includes a noteworthy decline in market expectations for a U.S. interest rate hike in September, dropping from 67% to 55%, further solidifying gold’s appeal as an asset in the current environment of reduced interest rates. This aligns with historical trends where gold typically outperforms amid declining yields.
Market analysts suggest that gold could face volatility driven by fluctuations in crude oil prices and ongoing geopolitical uncertainties. Current technical analysis reveals support levels for gold between $4,264-$4,220 per troy ounce and resistance at $4,355-$4,400. Similarly, on the MCX, gold support is set between Rs 1,47,200-Rs 1,46,000, and resistance is identified at Rs 1,50,000-Rs 1,51,500. For silver, support lies at Rs 2,25,500-Rs 2,23,000 and resistance at Rs 2,30,000-Rs 2,34,400. Traders are advised to consider strategic entry points based on these technical indicators, with particular recommendations to buy above Rs 1,48,800 for gold and Rs 2,29,100 for silver.
In the physical market, gold prices remain stable with standard gold (22 carat) priced at Rs 1,07,008 per 8 grams in Delhi and Rs 1,06,888 in Mumbai. The consistency in physical demand reflects an underlying confidence among investors amid the current price fluctuations. The interplay between regional geopolitical developments and macroeconomic conditions will be pivotal in shaping the near- and long-term trajectories of precious metal prices. Investors should remain vigilant and responsive to these evolving dynamics.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)