Precious Metals See Significant Drop
On October 30, 2026, both gold and silver futures experienced a notable decline, driven by investor concerns over persistent inflation and the prospect of stricter US monetary policy. International gold futures fell below the crucial $4,000 per ounce mark, while silver neared the $50 level.
On the Multi Commodity Exchange (MCX), December gold futures were down 0.57% to Rs 1,41,790 per 10 grams. Silver futures saw a more pronounced drop, declining 1.96% to Rs 1,85,735 per kg. In international markets, December gold futures decreased by 0.76% to $4,000 per ounce, and silver fell 2.13% to $51 per ounce.
Key Factors Driving the Decline
According to Sugandha Sachdeva, Founder of SS WealthStreet, the current correction in precious metals reflects growing pressure from several economic and geopolitical factors:
- Inflation Concerns: Persistent inflation remains a primary worry, with US PCE inflation rising to 3.6% in September (core PCE at 3.1%).
- Tighter US Monetary Policy: The US Federal Reserve has maintained its interest rates but hinted at a potential rate hike in December, keeping the possibility of higher-for-longer rates alive.
- Resilient US Economy: Strong third-quarter US GDP growth of 3.4% (above expectations) further supports the narrative that interest rates may remain elevated, diminishing the appeal of non-yielding assets like gold and silver.
- Geopolitical Tensions: Escalating US-Iran tensions have contributed to elevated crude oil prices, fueling fears of energy-driven inflation. While geopolitical uncertainty often boosts gold's safe-haven appeal, the current inflationary impact is overriding this support.
Outlook and Key Levels to Watch
From a technical perspective, Sachdeva indicates that the near-term outlook for precious metals remains under pressure. Investors should monitor key support and resistance levels:
International Market
- Gold: Immediate support is identified in the $3,950-$3,970 zone, with reclaiming $4,000 being a critical resistance.
- Silver: The next major support level is $48, while $53 is expected to act as immediate resistance.
Domestic Market (MCX)
- Gold: Key support levels are Rs 1,41,500, followed by Rs 1,40,000 and Rs 1,37,000. Significant resistance is at Rs 1,45,000.
- Silver: Support levels are at Rs 1,80,000 and Rs 1,73,000, with Rs 1,97,000 serving as a crucial resistance point.
Moving forward, crude oil prices, upcoming US inflation data, signals from the Federal Reserve, and developments in the Gulf region will be crucial triggers for precious metals. A reduction in geopolitical tensions and a meaningful correction in crude oil prices could ease inflationary pressures and pave the way for a recovery in gold and silver values.
Note: Support and resistance levels are analyst estimates and not guaranteed price targets.