Gold, Silver Rally on Inflation Fears & Fed Watch

On Monday, October 26, 2026, gold and silver prices saw an increase on the Multi Commodity Exchange (MCX). Investors are currently evaluating the impact of rising crude oil prices and ongoing inflation concerns, alongside anticipation of the US Federal Reserve's forthcoming policy announcement.

MCX gold futures for December 4, 2026, were trading at Rs 1,42,809 per 10 grams, showing a 0.55% rise. Silver futures for the same date were up 0.48% at Rs 1,96,650 per kilogram. These domestic gains occurred while international silver prices remained near an 11-month low of approximately $54 an ounce.

The Federal Reserve's policy decision this week is a critical factor for precious metals. While no interest rate change is expected at the upcoming meeting, investors will seek clues regarding potential December rate hikes. Elevated interest rates typically depress non-yielding assets like gold and silver.

Furthermore, escalating geopolitical tensions in the Middle East are driving up crude oil prices, exacerbating inflation worries. This situation may limit the possibility of interest rate cuts and could negatively affect bullion. Any further regional conflict escalation might increase market uncertainty and impact precious metals.

Analysts suggest that gold could potentially fall to $3,950 (Rs 1,40,000) if it breaks below $4,000, and silver might test $50 if it drops below $54.5. However, a medium-term rebound of 10-15% is anticipated, with sustained prices above $4,200 for gold and $62 for silver needed to revive an uptrend.