Domestic gold futures edged higher on Wednesday, tracking a rise in spot demand as the festive season approaches. On the Multi Commodity Exchange (MCX), gold contracts for October delivery gained 0.3% to trade at Rs 58,200 per 10 grams, while silver futures also inched up.
Factors Behind the Rally
The uptick in gold prices was attributed to increased buying from jewellers and retailers ahead of Dhanteras and Diwali, when gold purchases are considered auspicious. Analysts noted that the recent correction in prices had attracted buyers, leading to a pickup in physical demand.
Globally, gold prices were mixed as investors awaited cues from the US Federal Reserve's policy meeting. However, domestic factors such as a weaker rupee and strong seasonal demand provided support to the yellow metal.
Market Outlook
Experts believe that gold prices may remain volatile in the near term due to global macroeconomic uncertainties. However, the festive demand is likely to keep prices supported at lower levels. MCX gold has support at Rs 57,800 and resistance at Rs 58,500.
In the international market, spot gold was trading flat at around $1,920 per ounce, while US gold futures edged lower. The dollar index remained steady, limiting major moves in bullion.
Investors are advised to monitor the Fed's interest rate decision and geopolitical developments for further direction. Meanwhile, silver futures on MCX for December delivery rose 0.2% to Rs 71,500 per kg.
