Mr. Ashish Rajodiya of PL Capital Group Shares Insights on the Future of Commodities.

Gold and silver prices remain largely flat as investors await critical inflation data from the United States. As of Wednesday, MCX gold is trading around Rs1,52,500 per 10 grams, while MCX silver is near Rs2,39,500 per kg. This consolidation follows a volatile start to the week influenced by the previous Friday’s robust US jobs report, which increased market expectations for a 25-basis-point rate hike from the Federal Reserve during its impending meeting. With the lack of fresh market stimuli on Wednesday, both precious metals have settled into a narrow trading range.

The catalysts behind the current pricing dynamics include geopolitical tensions and inflationary pressures. Crude oil prices have continued to rise, with WTI holding above $92 per barrel and Brent nearing $97, fueled by ongoing tensions between the US and Iran affecting vital shipping routes in the Middle East. Elevated crude prices are contributing to growing inflation concerns, which heighten the likelihood of a rate hike by the Federal Reserve. As inflation becomes increasingly relevant ahead of the Fed meeting next week, these developments could exert downward pressure on non-yielding assets such as gold and silver.

Looking ahead, the short-term outlook for traders suggests a cautious approach as they await upcoming US inflation metrics, specifically the Producer Price Index and Consumer Price Index. A softer inflation figure could potentially rekindle the recent rally in precious metals, while a stronger reading may shift market sentiment towards the dollar, adversely affecting gold and silver prices. Technical indicators suggest gold has support at Rs1,49,000–1,47,000 and resistance at Rs1,55,500–1,57,100, whereas silver’s support lies at Rs2,31,000–2,27,000 with resistance at Rs2,43,000–2,46,000.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)