Gold, Silver Prices Rise Ahead Of Fed Meet As Markets Stay Cautious

Gold and silver prices rose on Tuesday ahead of the US Federal Reserve policy meeting, reflecting cautious investor sentiment.

On the Multi Commodity Exchange (MCX), gold futures for April 2 traded at ₹1,57,145 per 10 grams around 10 AM, gaining ₹1,409 or nearly 1 per cent.

During the session, gold touched an intraday low of ₹1,56,649, indicating a firm but range-bound trend.

Silver also gained momentum, with May 5 contracts rising 2.4 per cent, or ₹6,367, to ₹2,62,899 per kg after hitting an intraday low of ₹2,58,338.

Investors tracked the upcoming Federal Reserve meeting, which begins on March 17, as geopolitical tensions and rising crude oil prices continue to influence inflation expectations and interest rate outlook.

Analysts said both metals are consolidating after reaching record highs. Gold is currently trading within the ₹1,56,500–₹1,57,500 range, suggesting mild profit booking.

They added that as long as prices stay above the ₹1,55,000–₹1,56,000 support zone, the medium-term outlook remains bullish.

A breakout above ₹1,59,000 could drive prices towards ₹1,63,000–₹1,65,000.

For silver, analysts noted that a sustained move above ₹2,65,000 could push prices higher towards ₹2,75,000–₹2,80,000, while key support remains between ₹2,47,000 and ₹2,50,000.

Globally, COMEX gold is undergoing a short-term correction after hitting record highs, with support near the $4,950–$5,000 range.

Investors earlier drove gains in precious metals on expectations of rate cuts.

Analysts warned that higher inflation signals or continued elevated rates by the Federal Reserve could weigh on prices.

In the previous session, metals fell up to 2 per cent as hopes of near-term rate cuts faded, while rising West Asia tensions kept sentiment cautious.

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