Gold prices rise for 2nd day, silver up Rs 3,500/kg on soft dollar ahead of inflation data - The Economic Times

AI desk brief

Gold and silver firmed as the dollar softened ahead of the US PPI/CPI sequence, with spot gold up 0.6% to $4,429.89/oz, COMEX December gold little changed at $4,475.10, and spot silver up 1% to $66.78/oz. Platinum rose 0.4% to $1,834.00/oz and palladium gained 1% to $1,402.87/oz, while MCX pricing was mixed on the day with silver outperforming gold.

The macro backdrop remains the key driver: traders are watching Thursday’s producer price index and Friday’s CPI for confirmation on the Fed path after stronger August US jobs data trimmed gold’s recent gains. CME FedWatch shows a 60% probability of a rate hike at next week’s FOMC meeting, which is a near-term headwind for non-yielding bullion, but geopolitical risk is lending support after Iran threatened “economic warfare” and cited missile activity against US warships.

Technically, the article flags support for spot gold at $4,440-$4,400 and resistance at $4,510-$4,555; silver support is seen at $65.50-$64.40 with resistance at $68.00-$69.10. On MCX, gold support is Rs 1,51,750-Rs 1,50,500 with resistance at Rs 1,53,850-Rs 1,54,700, while silver support sits at Rs 2,36,600-Rs 2,35,000 and resistance at Rs 2,41,000-Rs 2,44,000. Analyst advice is to buy dips, with targets extending to Rs 1,54,400-Rs 1,56,500 for gold and Rs 2,41,000-Rs 2,44,000 for silver, implying the market is still treating pullbacks as accumulation opportunities ahead of inflation data.