Gold and silver prices in India moved higher on the Multi Commodity Exchange (MCX) despite the US Federal Reserve’s latest interest rate increase. Gold traded near ₹153,050 per 10 grams, while silver climbed to ₹239,249 per kg. Investors are weighing the impact of higher interest rates against easing oil supply concerns and upcoming geopolitical developments in the Gulf region.
Gold and silver prices on the Multi Commodity Exchange (MCX) showed resilience, rising on Friday despite the US Federal Reserve’s recent decision to raise interest rates. Historically, higher interest rates often weigh on non-yielding assets like precious metals because they increase the opportunity cost of holding them compared to interest-bearing assets. However, market sentiment on Friday suggested that broader macroeconomic and geopolitical factors are currently influencing investor decisions more heavily.
Gold futures for the October contract opened at ₹152,250 per 10 grams, lower than the previous close of ₹152,981. Despite the weak start, buying interest emerged during the trading session, pushing the price to an intraday high of ₹153,105. By the session's peak, gold was trading around ₹153,050 per 10 grams. In global markets, Comex gold futures remained steady near $4,396.50 per ounce, indicating that the metal is holding ground internationally as well.
Silver showed even stronger momentum than gold during the session. The benchmark December MCX silver contract opened at ₹238,478 per kg and moved higher by more than ₹1,000, trading near ₹239,249 per kg. International trends reflected this strength, with Comex silver futures trading around $66.59 per ounce. This performance suggests that investors are finding reasons to stay invested in silver, possibly balancing the impact of monetary policy against other market drivers.
Global energy prices played a notable role in shaping investor sentiment on Friday. Crude oil prices softened following reports that Saudi Arabia is taking steps to restore supply through its east-west pipeline. This development has helped alleviate some concerns regarding crude availability. Additionally, market participants are looking ahead to the meeting between US President Donald Trump and Gulf leaders scheduled for next week. Traders are closely watching these geopolitical developments, as the outcome could influence energy markets, global risk appetite, and consequently, the price of safe-haven assets.
For investors, the recent price movement highlights the difficulty of predicting bullion trends solely based on central bank actions. While interest rates remain a critical variable, the interplay between energy supply, potential geopolitical shifts, and broader economic sentiment is clearly driving price action. Investors may continue to monitor how these variables interact in the coming sessions, particularly any commentary or policy signals emerging from the upcoming meetings involving major energy producers and the US administration.