Precious metals continued their upward journey in the first half of October, with both gold and silver reaching fresh all-time highs. The prices cooled off subsequent to the U.S. Federal Reserve’s interest rate decision being announced. The firming up of the U.S. dollar too played a part in the recent cool-off from the all-time highs.

Comex gold zoomed past the psychological $4,300 mark earlier in the month and closed at $4,013.4 by the end of October. This represents a gain of 3.24%. Comex silver gained 3% to settle at $48.25 last month. Mirroring the trend in the global markets, the MCX gold price gained 3.4% to settle at ₹1,21,284 per 10 grams. MCX silver recorded a 4.2% gain last month to settle at ₹1,48,399 per kg.

As observed last month, the Comex gold price got into a pullback phase, which was warranted as the price was extremely overbought in the short term. The recent pullback and consolidation have addressed this overbought scenario to a major extent and price could resume its upward trajectory soon.

The long-term trend remains positive, and the price could head toward the next target of $4,450-4,500. A fall below the immediate support at $3,820 would be an early signal that the price is still in a consolidation phase, and the eventual move towards the next target zone would be delayed a bit. Comex silver price moved in sync with expectations, and the price witnessed a cool-off in the latter half of October. The recent pullback in price is likely to sustain for a few more weeks before the long-term uptrend resumes. A fall below $45 could push the price into a more prolonged consolidation phase. The silver price is likely to head to the next target of $57-$59 once the ongoing consolidation phase is over.

All-time high

Domestically, the MCX gold price, too, hit an all-time high and crossed the psychological ₹1,30,000 level in mid-October before cooling off in the past few weeks. The recent pullback in price is likely to sustain for a few more weeks before the resumption of the long-term uptrend. A fall below ₹1,15,000 would be an early signal that the cool off in price could get more prolonged, but the MCX gold price could eventually head to the target of the ₹1,38,000-₹1,40,000 range.

In sync with expectations, the MCX silver price, too, got into a corrective phase and eased from a high of ₹1,70,415 to the current level of ₹1,48,399. Expect the silver price to consolidate in a range for a few more weeks. The long uptrend would resume once the anticipated consolidation is over. The next target for MCX silver is ₹1,78,000-₹1,82,000.

To summarise, both gold and silver are likely to continue their recent pullback before the long-term uptrend resumes.

(The author is a Chennai-based analyst/trader. The views and opinions featured in this column are based on the analysis of short-term price movement in gold and silver futures at COMEX & Multi Commodity Exchange of India. This is not meant to be a trading or investment advice.)

Gold prices on Wednesday (October 29, 2025) rebounded by ₹2,600 to ₹1,24,400 per 10 grams in the national capital, snapping a two-session losing streak, amid a fresh wave of safe-haven buying ahead of the policy outcome by the U.S. Federal Reserve.

Gold of 99.5% purity appreciated by ₹2,600 to ₹1,23,800 per 10 grams (inclusive of all taxes) from the previous close of ₹1,21,200 per 10 grams, according to the All India Sarafa Association.

The precious metal of 99.9% purity had settled at ₹1,21,800 per 10 grams on Tuesday (October 28, 2025).

“Gold prices rebounded on Wednesday, reclaiming the psychological level of $4,000 per ounce ahead of the highly anticipated FOMC (Federal Open Market Committee) policy meeting outcome,” Saumil Gandhi, senior analyst – commodities at HDFC Securities, said.

Silver also witnessed a sharp rebound as prices surged by ₹6,700 to ₹1,51,700 per kilogram (inclusive of all taxes). The white metal had ended at ₹1,45,000 per kg on Tuesday, as per the association.

Mr. Gandhi said bargain buying and a renewed demand for safe-haven assets, following rising geopolitical concerns in the Middle East region.

In the international markets, spot gold climbed by $77.26, or 1.95%, to $4,029.53 per ounce, ending a three-day losing streak.

“Spot gold is currently trading around at $4,020 per ounce as the metal tries to recover from its Tuesday’s low of $3,886 ahead of the FOMC monetary policy decision due tonight.

“The Fed is widely expected to cut rates by 25 basis points as it has turned its focus on the weakening job market,” Praveen Singh, head of commodities and currencies at Mirae Asset Sharekhan, said.

The metal is still not out of the woods, though a Fed rate cut will limit the downside, he added.

Meanwhile, the dollar index rose 0.15% to 98.82 ahead of the Fed outcome, while optimism over signs of easing U.S.-China trade tensions may cap further upside in safe-haven demand, analysts said.

Spot silver rose by 2.85% to $48.40 per ounce in the overseas markets.

Persistent geopolitical risks also remain after the U.S. Senate again failed to clear a Republican-backed bill to end the government shutdown.

The White House cancelled a planned meeting between U.S. President Donald Trump and Russian President Vladimir Putin after fresh sanctions were imposed on Moscow’s top oil companies, which might continue to support the precious metal, according to experts.