Gold and silver prices opened mixed on the Multi Commodity Exchange on Friday, supported by weaker oil prices and a subdued US dollar, while investors continued to monitor developments in the Middle East and the outlook for global interest rates.

In the domestic market, MCX silver futures for September 2026 delivery were up Rs 1,000 to Rs 2,39,008 per kg. Gold futures for October 2026 delivery declined by Rs 800 to Rs 1,52,171 per 10 grams.

The Federal Reserve raised interest rates on Wednesday and indicated that further hikes could follow in the coming months. Its updated quarterly economic projections showed that 16 of 18 policymakers expect at least one more 25-basis-point rate increase by the end of this year.

Despite the latest US rate increase, Goldman Sachs retained its end-2027 gold price forecast of $5,400 per troy ounce. The bank said tighter monetary policy is expected to slow the rally in bullion but is unlikely to derail it, a Reuters report stated.

Gold is traditionally considered a hedge against inflation, but higher interest rates can weigh on demand for the non-yielding asset by making yield-bearing investments more attractive.

The Bank of England left interest rates unchanged on Thursday but warned that rates could still rise. The Bank of Japan is expected to raise rates to a 31-year high on Friday and signal further increases to address inflation risks.

Meanwhile, data showed that new US applications for unemployment benefits unexpectedly declined last week. However, the drop was likely exaggerated by the Labor Day holiday, while the underlying trend continued to point to a stable labour market.

Spot gold rose 0.3% to $4,352.60 per ounce as while US gold futures for December delivery slipped 0.2% to $4,391.60.

Among other precious metals, spot silver rose 0.7% to $65.64 per ounce, platinum gained 0.9% to $1,785.55, while palladium edged up 0.1% to $1,292.47.

Manoj Kumar Jain of Prithvi Finmart said gold and silver prices are likely to remain highly volatile during today's session, but are expected to hold their weekly closing support levels of $4,240 and $62.00 per troy ounce, respectively.

He said volatility in crude oil prices and the dollar index, along with the outcome of the Bank of Japan's monetary policy meeting, could keep precious metals volatile. For today's session, gold has support at $4,355-4,310 and resistance at $4,440-4,484 per troy ounce, while silver has support at $64.80-63.50 and resistance at $67.40-68.80 per troy ounce.

On the MCX, gold has support at Rs 1,51,650-1,50,500 and resistance at Rs 1,53,800-1,55,000, while silver has support at Rs 2,36,000-2,33,300 and resistance at Rs 2,40,400-2,43,000. Jain suggested that traders book profits on long positions in gold and silver on every rise in prices.

Standard gold (22 carat) prices in Delhi stand at Rs 1,12,192/8 grams while pure gold (24 carat) prices stand at Rs 1,22,384/8 grams.

Standard gold (22 carat) prices in Mumbai stand at Rs 1,12,072/8 grams while pure gold (24 carat) prices stand at Rs 1,22,264/8 grams.

Standard gold (22 carat) prices in Chennai stand at Rs 1,12,072/8 grams while pure gold (24 carat) prices stand at Rs 1,22,264/8 grams.

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,12,072/8 grams while pure gold (24 carat) prices stand at Rs 1,22,264/8 grams.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)