Gold futures on MCX slipped 0.58% to ₹1.41 lakh per 10 grams, while silver futures tumbled 2.40% to ₹1.84 lakh per kg.
The dip follows the latest U.S. PCE data, which rose 0.5% in September—its steepest monthly increase since March—fueling fears that the Federal Reserve may keep rates elevated longer.
Vedika Narvekar of Anand Rathi noted that the 1% decline in gold to $3,983 reflects stronger‑than‑expected U.S. inflation, while Ashish Rajodiya of PL Capital warned that hawkish policy and robust economic data are tightening the precious‑metal market.
Technical observers set short‑term support for spot gold at $3,950, with a breach potentially moving it toward $3,900, and resistance at $4,070. MCX gold traders see a trading band of ₹1.40 lakh to ₹1.44 lakh per 10 grams.
Given the backdrop of rising crude prices and ongoing geopolitical tensions, analysts expect continued volatility, with safe‑haven demand likely to support gold if the dollar weakens, but Fed policy could restrain gains.