Gold, silver rise ahead of Federal Reserve meeting as investors stay cautious
NEW DELHI — Gold and silver prices moved higher Tuesday as investors positioned ahead of the U.S. Federal Reserve’s closely watched policy meeting, with gains driven by cautious sentiment amid geopolitical tensions and rising oil prices.
On the Multi Commodity Exchange, gold futures for April delivery were trading at Rs 1,57,145 per 10 grams in morning trade, up Rs 1,409, or about 1 percent. Prices touched an intraday low of Rs 1,56,649, indicating a firm but range-bound trend.
Silver futures for May delivery rose 2.4 percent, or Rs 6,367, to Rs 2,62,899 per kilogram. The metal hit an intraday low of Rs 2,58,338 earlier in the session.
The gains come ahead of the Federal Reserve’s two-day policy meeting beginning March 17, with the outcome expected March 18. Investors are closely monitoring the meeting for signals on interest rate direction, particularly as global inflation risks remain elevated.
Analysts said both metals are currently in a consolidation phase after recently hitting record highs. Gold is trading within a narrow band of Rs 1,56,500 to Rs 1,57,500, suggesting mild profit-taking alongside underlying strength.
As long as prices hold above the Rs 1,55,000–Rs 1,56,000 support range, the medium-term outlook for gold remains positive, analysts said. A sustained breakout above Rs 1,59,000 could push prices toward the Rs 1,63,000–Rs 1,65,000 range.
For silver, a move above Rs 2,65,000 could open the door to further gains toward Rs 2,75,000–Rs 2,80,000, while key support is seen between Rs 2,47,000 and Rs 2,50,000.
Globally, COMEX gold has entered a short-term corrective phase after reaching record highs, with strong support identified near the $4,950–$5,000 range.
Recent gains in precious metals have largely been fueled by expectations of potential interest rate cuts. However, analysts warned that if the Federal Reserve signals persistent inflation — particularly due to rising crude oil prices — or maintains higher rates for longer, it could weigh on gold and silver prices.
In the previous session, both metals had declined by as much as 2 percent as expectations for near-term rate cuts weakened, even as tensions in West Asia continued to keep market sentiment cautious.
Crude oil prices have surged more than 50 percent over the past month amid escalating conflict involving Iran, the United States, and Israel, adding to global inflation concerns and complicating the Fed’s policy outlook. (Source: IANS)
