MCX gold futures for October delivery were trading at ₹1.52 lakh per 10 grams, down 0.62%, while silver futures for December delivery stood at ₹2.37 lakh per kilogram, also lower by 0.62%.
Gold had earlier risen to an intraday high of ₹1.53 lakh per 10 grams before reversing gains. In global markets, Comex gold futures were trading around $4,355 an ounce, while silver was around $65.75 an ounce.
“Gold and silver are consolidating as expectations of rates staying higher for longer keep sentiment in check, with markets awaiting fresh cues from Fed officials,” said Prithviraj Kothari, managing director at RiddiSiddhi Bullions and president of the India Bullion and Jewellers Association (IBJA).
Kothari said both metals continue to have a bullish technical bias, with gold seen in the $4,250-$4,450 an ounce range and silver in the $62.5-$67.5 an ounce range.
Gaurav Garg, head of research at Lemonn, said easing US Treasury yields and softer crude prices were providing some support to precious metals, although expectations of a higher-for-longer Federal Reserve rate outlook were limiting gains.
“Gold is steady, trading near $4,362 an ounce, bouncing back after its worst day in a week yesterday,” said Vedika Narvekar, research analyst, commodities and currencies, Anand Rathi Share and Stock Brokers.
She said easing oil prices and expectations around US monetary policy were supporting gold, while continued inflows into gold ETFs and strong Chinese demand provided an underlying demand backdrop. Narvekar expects gold to remain in the $4,320-$4,410 an ounce range, with oil prices and Fed commentary key factors to watch.
For domestic buyers, the rupee is another factor that can influence prices.
Puneet Singhania, director at Master Capital Services, said festive demand around Dhanteras and Diwali does not determine global precious-metal prices, which are more closely influenced by US real interest rates, the dollar and central-bank buying. A weaker rupee, however, can keep domestic gold and silver prices elevated even if global prices soften.
Singhania also noted that silver tends to see sharper price swings because of its industrial demand exposure. For investors looking to add precious metals, he suggested staggering purchases to average out price volatility rather than making a single large purchase.