Gold and silver prices increased on Tuesday as investors awaited the US Federal Reserve’s policy meeting. Gold futures on the Multi Commodity Exchange (MCX) were up by around 1% to Rs 1,57,145 per 10 grams, while silver contracts climbed 2.4% to Rs 2,62,899 per kg. The surge in precious metals comes before the Federal Reserve’s two-day meeting starting on March 17.
Analysts noted that both gold and silver are currently in a consolidation phase after reaching record highs. MCX gold is trading in the range of Rs 1,56,500–Rs 1,57,500, indicating consolidation or mild profit booking. For silver futures, a sustained move above Rs 2,65,000 could lead to further upside towards Rs 2,75,000–Rs 2,80,000 levels.
Global COMEX gold is also experiencing a short-term correction phase, with significant support around the $4,950–$5,000 zone. The recent gains in gold and silver have been driven by expectations of interest rate cuts, but higher inflation signals from the Fed due to rising crude prices could impact precious metal prices. In the previous session, precious metals declined up to 2% amid reduced hopes of an imminent rate cut, despite ongoing tensions in West Asia.
Crude oil prices have surged over 50% in the past month due to the Iran-US-Israel conflict, raising global inflation concerns. The outcome of the Federal Reserve meeting on March 18 will be closely monitored for its potential impact on inflation and the Fed’s rate trajectory.
