On Wednesday, December gold futures on the MCX slipped 0.04% to ₹1.44 lakh per 10‑gram, while silver futures fell 0.54% to ₹1.95 lakh per kilogram. Across the pond, spot gold traded at $4,055.14 per ounce, and U.S. December gold futures rose 0.9% to $4,074.60.
The dip comes as traders brace for the Federal Reserve’s policy meeting on October 29, with expectations about the interest‑rate trajectory weighing on bullion. A stronger dollar and higher Treasury yields would raise the opportunity cost of holding gold, while the rupee’s slide to ₹95.18 per dollar is tightening imported gold margins.
Gaurav Garg, Head of Research at Lemonn, warned that “gold and silver are under renewed pressure as investors weigh the Fed’s stance and elevated energy costs.” He added that silver’s industrial demand makes it more sensitive to yield expectations than gold.
The looming U.S. mid‑term elections could further tilt the market. Ross Maxwell, Chief Strategy Officer at VT Markets, noted that a divided Congress might restrain fiscal expansion, capping Treasury yields and potentially supporting gold, whereas a Republican sweep could spur deficit concerns and lift yields, pressuring prices.
Technical observers highlight key support levels: for gold, ₹1.42 lakh per 10‑gram; a breakout above ₹1.44 lakh could signal a rebound. Silver’s support sits at ₹1.91 lakh per kg, with a break above ₹1.97 lakh seen as a bullish sign, according to Vikram Subburaj of Giottus.com.
With the Fed’s decision and the PCE inflation data due later this week, bullion traders remain cautious. Retail buyers planning purchases for Diwali or weddings should factor in local premiums, taxes and jewellery‑making surcharges, as spot prices do not directly translate to final retail rates.