Silver Surges Rs 2,700 and Gold Nears Rs 1.50 Lakh as US Fed Maintains Rates Amid Iran War Uncertainty—What Actions Should Investors Consider?

Gold and silver prices experienced a slight uptick on the Multi Commodity Exchange of India (MCX) on Thursday, recovering from previously oversold levels. While this rebound is noteworthy, the gains are moderated by ongoing worries regarding rising oil prices, which may exacerbate inflation and prolong elevated interest rates. The Federal Reserve’s recent decision to maintain interest rates has heightened market anxiety, particularly as the central bank issued a divided statement regarding growing inflation concerns, leading to a significant shift in market expectations. Traders are increasingly anticipating that rate cuts are off the table for the remainder of the year, with a 30% probability of a rate hike emerging by March 2027, a substantial rise from just 5% a day prior.

On the domestic front, MCX silver futures for July 2026 delivered a gain of Rs 2,700, or 1%, reaching Rs 2,40,908 per kg, while gold futures for June 2026 remained relatively unchanged, settling at Rs 1,49,526 per 10 grams. Global spot gold also noted a 0.7% increase, reaching $4,573.09 per ounce, following a dip to its lowest level since March. Despite gold’s historical role as an inflation hedge, the increasing attractiveness of yield-bearing assets due to rising interest rates may limit its appeal in the current market landscape.

Market analysts, including Manoj Kumar Jain of Prithvi Finmart, predict continued volatility in precious metals this week, influenced by fluctuations in the dollar index and crude oil prices. Jain identifies support levels for gold at $4,522-$4,470 per troy ounce and resistance at $4,600-$4,640, while silver is expected to find support at $70-$68 and resistance at $74.40-$76.60. On the MCX, gold is anticipated to have support in the range of Rs 1,48,400 to Rs 1,47,700 and resistance at Rs 1,49,800 to Rs 1,50,500. Jain further advises investors to exercise caution and wait for market stabilization before initiating new positions.

Source: The Economic Times

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