Domestic Gold Rates Inch Up; Fed Decision Keeps Markets Watchful

Gold and silver prices in India made only small gains on Monday, as markets stayed cautious ahead of a key policy event. Gold remained around Rs 1.42 lakh per 10 grams, and silver continued to trade below Rs 1.95 lakh per kilogram.

In the domestic market, 24-carat gold went up by Rs 80 to Rs 1,41,710 per 10 grams, compared with Rs 1,41,630 before. The rate for 22-carat gold rose to Rs 1,29,806 per 10 grams from Rs 1,29,733. Likewise, 18-carat gold improved to Rs 1,06,283 per 10 grams from Rs 1,06,223.

Silver prices also edged higher by Rs 64, reaching Rs 1,94,479 per kilogram from Rs 1,94,415.

Overseas prices were slightly stronger. When this report was prepared, gold on COMEX was up 0.55 percent at $4,029 per ounce, and silver had risen 0.26 percent to $54.09 per ounce.

Trading in gold remained range-bound, though the metal held its ground above the crucial $4,000 per ounce level on COMEX. Analysts pointed to high crude oil prices and the possibility of higher US interest rates as factors supporting the dollar and limiting gains in precious metals.

The Federal Reserve's policy decision this week is the main focus for traders. Market players are also watching inflation worries and US election-related uncertainty. Gold on COMEX may move between $3,950 and $4,100 per ounce before the decision, and the outcome will guide the next trend.