Precious metals, including gold and silver, are presently exhibiting range-bound trading as market participants await fresh directional cues from impending US monetary policy announcements. As of October 6, 2026, both metals saw limited movement in both domestic and international markets.
MCX gold futures for December delivery were trading around ₹1,49,212 per 10 grams, marginally lower, while MCX silver futures stood near ₹2,25,632 per kg. Globally, gold was approximately $4,154.65 per ounce, and silver hovered around $60.99 per ounce.
Factors Influencing Precious Metals
According to Anuj Gupta, Research Analyst, the current market consolidation follows profit booking at higher levels observed last week. Traders are now keenly watching several key triggers that could dictate the next major move for bullion prices.
Easing Rate Hike Expectations
A significant factor supporting precious metals is the notable decline in expectations for an immediate US interest rate hike. Current projections for a US rate hike stand at around 23%, a figure considerably lower than previous estimates. Lower rate hike expectations typically provide a more favorable environment for non-yielding assets like gold and silver. The market is particularly focused on the upcoming US Federal Open Market Committee (FOMC) meeting, scheduled for October 27-28, for further clarity on the central bank's monetary policy stance.
Dollar Movement and Bond Yields
The performance of the US dollar index remains a critical determinant for gold and silver prices. The dollar index, which had recently surpassed 102, has since retreated below this level, indicating some profit booking. A weaker dollar generally makes dollar-denominated commodities more attractive to international buyers. Similarly, bond yields are an important consideration. Currently, bond yields are stable; however, any buying activity at lower levels could provide additional support for gold and silver.
Key Support and Resistance Levels
Gold
- International Market: Key support levels are identified at $4,110 and $4,080. Resistance levels to watch are $4,160 and $4,190.
- Domestic Market (MCX): Important support levels are ₹1,48,500 and ₹1,47,700. Resistance levels are anticipated at ₹1,50,000 and ₹1,50,800.
Silver
- International Market: Support levels are seen at $60 and $58. Major resistance levels are $63 and $65.
- Domestic Market (MCX): Critical support levels are ₹2,22,000 and ₹2,18,000. Resistance levels are expected at ₹2,28,000 and ₹2,32,000.
As precious metals navigate this range-bound period, the market's direction will largely hinge on whether lower price points attract renewed buying interest or if profit booking continues. The US Federal Reserve's policy signals, along with the trajectory of the dollar and bond yields, will remain the primary triggers for gold and silver's future movements.