Gold prices rise Rs 200 per 10 grams on global recovery; Fed Policy in focus​ – Markets

Gold prices rose Rs 200 to Rs 1,46,300 per 10 grams in the national capital on Monday (October 26), supported by a weaker rupee and a modest recovery in overseas markets. The 99.9 per cent pure yellow metal closed at Rs 1,46,100 per 10 grams on Friday (October 23). Silver remained unchanged at Rs 2,02,000 per kilogram, inclusive of all taxes, after three consecutive sessions of losses, according to a PTI report citing local traders. As of 5:50 am, spot gold was trading nearly unchanged at USD 3,992.97 per ounce, hovering close to a more than three-month low level. In contrast, spot silver posted gains during the session. Silver prices rose 0.3 per cent to USD 54.05 per ounce.

Rupee falls 29 paise to record low of 95.22 against US Dollar

The rupee fell for the third consecutive session, settling 29 paise lower at 95.22 against the US dollar on Monday, making dollar-denominated gold imports costlier and lending support to domestic prices, according to traders.

Rate hike expectations weigh on bullion

Pressure on bullion prices intensified amid rising expectations of another Federal Reserve rate hike in 2026. According to the data from the CME’s FedWatch tool, expectations for a rate hike stood at around 10 per cent, while the probability of a rate increase during the December FOMC meeting surged to nearly 80 per cent.

Higher rate-hike expectations are generally viewed as negative for gold, as they support bond yields and strengthen the US dollar, increasing the opportunity cost of holding non-yielding bullion.

Focus shifts to Fed decision, inflation data

Last 10 Days Price of Gold

Apart from developments surrounding the U.S.-Iran conflict, market participants are also awaiting the US interest rate decision later this week for further direction on bullion prices.

Attention will also be on inflation data due on Thursday, which may provide additional insights into the condition of the world’s largest economy.

Gold prices rise as weak crude oil, lower US bond yields support bullion; Fed Policy in focus

“Gold prices in the domestic market advanced on Monday, tracking a slight recovery in overseas markets as weak crude oil rates, a steady US dollar, and lower benchmark Treasury yields provided support to bullion,” said Saumil Gandhi, Senior Analyst of Commodities at HDFC Securities.

In international markets, spot gold gained USD 17.49, or 0.44 per cent, to USD 4,013.12 per ounce, and silver traded flat at USD 53.91 per ounce. Spot gold edged higher as Gulf countries worked to revive diplomatic talks between the US and Iran, even as Washington weighed fresh military options against Tehran, said Praveen Singh, Head of Commodities at Mirae Asset Sharekhan.

According to Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, focus this week remains on the Federal Reserve’s policy decision, with investors closely assessing the interest rate outlook and Kevin Warsh’s forward guidance amid inflation concerns and US election-related uncertainty.