Indian gold and silver futures advance ahead of US inflation data
Precious metals gained on the MCX as investors weigh the inflationary impact of elevated crude oil prices against the prospect of tighter US monetary policy.
Gold and silver prices advanced in early trading on the MCX on Wednesday. October gold futures rose 0.61 per cent to ₹1,54,700 per 10 grams, while September silver futures gained 0.89 per cent to ₹2,37,749 per kilogram.
The rally tracked a broader global uplift in precious metals and healthy physical demand. US gold futures for December delivery climbed nearly 1 per cent to $4,474 per troy ounce as international prices held near the $4,400 level.
Geopolitical friction in the Middle East continues to underpin energy markets and stoke inflation anxieties. Brent crude traded roughly 1 per cent higher near $90 per barrel amid conflicting statements over the Strait of Hormuz.
Reports indicate Iran intends to keep the vital shipping lane closed until the US meets specific conditions. Conversely, US President Donald Trump asserted that the US maintains total control of the strategic waterway.
Sustained high energy costs have heightened the risk of a broader inflation flare-up. Such a scenario could force the US Federal Reserve and other major central banks to resume raising interest rates.
Traders are now looking to the upcoming US Consumer Price Index release for fresh signals on the monetary policy trajectory. The central bank held rates steady in July but signaled that policymakers are actively discussing future hikes.
Market participants remain divided on the Federal Reserve's likely move in September. Jateen Trivedi of LKP Securities noted that persistent crude strength has heightened expectations for a firm inflation print, warning this dynamic "could keep bullion volatile."
He added that near-term price action "will depend on the CPI outcome and subsequent movement in the US dollar and yields." These competing inflationary and monetary pressures are currently dominating market sentiment.
Despite the macroeconomic crosscurrents, technical indicators suggest further upside for domestic contracts. Ravi Singh, chief research officer at Master Capital Services, stated that a buy-on-dips strategy remains viable as long as gold holds above ₹1,52,500.
Singh identified ₹1,56,000 as the immediate resistance level. He noted that "a sustained breakout above this resistance could further strengthen momentum and open the way towards ₹1,58,600."
Other analysts share a similarly constructive near-term outlook for the yellow metal. Jigar Trivedi, a senior research analyst at IndusInd Securities, projects that October gold contracts could appreciate to ₹1,55,000 per 10 grams.
