- Gold futures rose ₹1,500, while silver gained ₹3,100 on MCX.
- US CPI and PPI reports could influence precious metals prices.
- Fed rate expectations and Treasury yields may determine the next move.
As investors await fresh US economic data, gold and silver prices have seen a significant rise. While the current uptrend is mainly driven by softer bond yields, signals from the US Federal Reserve about its potential interest rate decisions could also set the stage for the precious metals’ future direction.
Why are Gold and Silver Prices Moving Higher?
According to the latest report from The Economic Times, gold and silver prices show a notable positive trend. This bullish signal is reportedly driven by a weaker US dollar and falling Treasury yields.
On Friday, the Multi-Commodity Exchange (MCX) gold futures for delivery in December 2026 increased by ₹1,500 to ₹1,50,999 per 10 grams. At the same time, the price of silver futures rose by ₹3,100 to ₹2,24,304 per kilogram. On the international level, spot gold rose 0.9% to $4,169.32 per ounce. Silver hit $60 per ounce, with a 1.1% increase.
This clearly indicates that there is increasing demand for both gold and silver because of a weakening dollar and low bond yields. The traders have become more interested in gold and silver due to a weakening dollar as well as low bond yields.
Key Economic Data to Watch
It is worth noting that the current rise in gold and silver prices comes ahead of two important inflation reports in the US. The US Consumer Price Index (CPI) report for September is expected on October 14, while the Producer Price Index (PPI) report is scheduled for October 15.
Now, investors are waiting to see these figures, which could provide clues about inflation trends. The reports could also influence the interest rate decision of the Federal Reserve. If the reports reveal higher-than-expected inflation, the US dollar and Treasury yields could strengthen, putting pressure on gold and silver. On the other side, if inflation is softer, these metals could see further growth.
How Will the Federal Reserve’s Policy Decision Impact these Metals?
Importantly, the Federal Reserve’s interest rate outlook will be another key factor that could define the future of gold and silver prices. Investors are now watching for hints from Fed officials about their policy moves. Clues on whether they would cut interest rates or keep borrowing costs higher could set the backdrop for the movement of gold and silver prices.
If inflation is high, the Fed may delay rate cuts, or it may even result in further spikes. This could support both the US dollar and Treasury yields, thus impacting the metals negatively.
Will Gold and Silver Prices Continue to Rise?
Significantly, gold and silver prices could see further growth if the US dollar continues to weaken and Treasury yields continue to fall. If the CPI and PPI reports reveal softer inflation, this could come true. Currently, economists expect that US headline inflation may accelerate to 3.7% year over year in September, up from 3.4% in August. The core CPI may reach 2.5%, up from 2.4% last month. The PPI is also expected to rise 0.5% month over month.
If the reports meet these expectations and remain elevated, the Fed may keep interest rates higher for longer. It could also strengthen the US dollar and Treasury yields, putting gold and silver under pressure. They may lose their current momentum, resulting in notable losses.
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