Gold, silver edge higher as dollar eases: Will trade talks shift market momentum

Gold and silver prices inched higher on Thursday (October 30), supported by a softer US dollar and steady investor sentiment after the much-anticipated meeting between US President Donald Trump and Chinese President Xi Jinping in South Korea.

In India, gold prices stood at ₹12,049 per gram for 24-karat, ₹11,045 for 22-karat, and ₹9,037 for 18-karat gold.

Silver prices were at ₹152.10 per gram and ₹1,52,100 per kilogram, reflecting mild gains from the previous session.

Globally, spot gold rose 0.2% to $3,937.88 per ounce by 02:35 GMT, while US gold futures for December delivery slipped 1.2% to $3,950.70 per ounce.

Spot silver remained steady at $47.51 per ounce.

Dollar pullback supports metals

The dollar index fell 0.2% after touching a two-week high in the previous session, making gold and silver cheaper for buyers holding other currencies.

However, analysts said the broader sentiment remains restrained following the US Federal Reserve’s latest policy move.

“There’s no strong catalyst behind gold’s rebound apart from a technical bounce,” said Kyle Rodda, analyst at Capital.com. “The hawkish tone from the Fed and the lower probability of another rate cut in December have curbed the metal’s upside, though the long-term outlook still favours gold.”

Fed’s tone tempers bullion optimism

The Federal Reserve on Wednesday (October 29) reduced interest rates by 25 basis points for the second time this year, setting the benchmark rate at 3.75%–4.00%.

Fed Chair Jerome Powell indicated that policymakers remain divided on the outlook for monetary policy and warned that markets should not assume another rate cut this year.

“Gold and silver started strong but pared gains after Powell’s comments prompted profit-taking,” said Rahul Kalantri, VP – Commodities, Mehta Equities. “Despite the near-term weakness, both metals are on track for a firm monthly performance.”

According to Kalantri, gold has support at $3,900–$3,860 an ounce and resistance at $3,995–$4,040 an ounce, while silver’s support lies at $46.80–$46.15 an ounce with resistance near $48.15–$48.80 an ounce.

In India, gold is seen finding support at ₹1.19 lakh and facing resistance at ₹1.22 lakh per 10 grams.

Trade talks in focus

Markets are now assessing the outcome of the Trump–Xi discussions, which concluded in South Korea earlier in the day.

“Gold prices are consolidating after a brief pullback as traders await clarity from trade talks,” said Manav Modi, Analyst – Precious Metals at Motilal Oswal Financial Services Ltd. “While the Fed’s mixed signals have caused short-term volatility, inflation and global growth concerns could keep gold supported in the medium term.”

Outlook

Analysts expect precious metals to remain range-bound in the near term as markets balance Fed policy signals with trade developments. However, with persistent geopolitical risks and inflationary pressures, gold and silver are likely to retain their long-term appeal as defensive assets.

-With Reuters inputs