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On Thursday, following a decrease of 25 basis points by the Federal Reserve of America that created a surge in demand for safe-haven investments, Gold saw significant gains. The 25-basis-point rate cut from the Fed brought U.S. benchmark lending rates to the lowest level since 2022, resulting in a significant increase in precious metal purchases.
On the MCX, February gold futures were trading 0.60% higher at Rs. 1,30,575 per 10 grams, reflecting strengthened sentiment after the Fed decision. March silver futures rose 2.42% to Rs. 1,93,300 per kg.
Global markets also reacted positively. US gold futures for February climbed more than 1% to $4,271.30 per ounce.
Contrary to global markets, Gold prices decreased slightly in Mumbai. 24K gold fell to Rs. 13,020 from yesterday’s Rs. 12,931 per gram. The price for 10 grams of 24K gold has also declined to Rs. 1,30,200.00 from Rs. 1,29,310.00.
Similarly, due to the decrease in price for 24K gold, 22K gold prices have also fallen to Rs. 11,935.00 per gram from Rs. 11,945.00; the cost for 10 grams of 22K gold reached Rs. 1,19,450.00 from Rs. 1,18,650.00.
In Chennai, gold prices increased. 24K gold price per gram currently trades at Rs. 13,146.00 from the previous price of Rs. 13,124.00.
The price of 10 grams of 24K gold has also increased from Rs. 1,31,240.00 to Rs. 1,31,460.00.
The recent Fed rate cut was the 3 rd reduction during the 2023 calendar year, resulting in 75 basis points of total rate cuts to date. Historically, lower interest rates benefit gold prices due to the reduction of opportunity cost when holding non-income-producing assets, as interest rates decrease.
Analysts believe that upcoming data related to U.S. Employment, CPI Inflation and PCE could continue to shape Rate Expectations and keep the U.S. Dollar under pressure while providing additional strength to bullion.
In addition to being supported by Safe-Haven Buying, Silver's ability to perform in conjunction with tighter inventory levels and an increase in Industrial Demand are also providing a tailwind to the metal's recent price momentum.
Also Read: Top Gold Stocks on the TSX in 2025: Best Performers
For international markets, gold is expected to find support around $4,164 to $4,200, while resistance may appear between $4,258 and $4,300.
Silver’s support is projected near $59.80 to $60.40, with resistance likely at $62.20 to $63.50.
On the MCX, analysts believe gold will likely remain supported between Rs. 1,28,500-Rs. 1,29,100, whereas resistance may emerge around Rs. 1,30,660-Rs. 1,31,200.
Silver is seen holding support near Rs. 1,84,000-Rs. 1,86,500, while resistance zones are at Rs. 1,92,000-Rs. 1,94,000.
