Home / Business and Economy / Diwali Gold Rush: MCX Futures Surge Ahead of Festival
Diwali Gold Rush: MCX Futures Surge Ahead of Festival
2 Nov
Summary
- MCX silver futures rose Rs 2,800 to Rs 1,81,925 per kg.
- Gold futures gained Rs 613, reaching Rs 1,39,098 per 10 grams.
- US Federal Reserve officials signal potential further rate hikes.
Gold and silver futures on the MCX experienced an upward trend on Monday, opening higher ahead of the Diwali festivities. Specifically, December 2026 silver futures saw a significant increase of Rs 2,800, reaching Rs 1,81,925 per kg, while gold futures for the same delivery period rose by Rs 613 to Rs 1,39,098 per 10 grams.
Despite the domestic gains, broader market sentiment is influenced by persistent global inflation concerns. This has fueled expectations of further interest rate hikes by the US Federal Reserve. Three Fed officials publicly advocated for increased rates following their previous meeting where rates remained unchanged. This has amplified the appeal of non-yielding assets like gold.
International markets also saw fluctuations. Spot gold edged up but hovered near recent lows, while silver, platinum, and palladium also experienced gains. Analysts suggest that gold has support at $3,880 per troy ounce and resistance at $4,000, while silver is supported at $48.00 and faces resistance at $51.40.
Market experts advise caution for traders due to geopolitical tensions and fluctuating dollar index. Investors are encouraged to consider accumulating gold and silver through systematic investment plans during the current decline, while traders should be mindful of the upcoming US midterm elections.
