Gold and silver prices witnessed a recovery in India after experiencing a sharp decline in recent sessions. On the Multi Commodity Exchange (MCX), gold opened at ₹1,36,502 per 10 grams and climbed to an intraday high of ₹1,37,587 per 10 grams. The precious metal appeared to recover from its lowest level in nearly a year.

Silver, meanwhile, opened lower at ₹1,79,692 per kilogram but subsequently gained momentum, touching ₹1,80,199 per kilogram during trading.

Gold and Silver Recover in International Markets

A similar recovery was witnessed in international markets, where gold and silver prices bounced back from their recent lows.

On COMEX, gold was trading around $3,920 per ounce after previously falling to nearly $3,850 per ounce, its lowest level in approximately one year.

Silver also recovered after approaching its 52-week low of around $48.050 per ounce.

However, market experts believe it would be premature to consider the recent gains a strong or sustained recovery.

US Federal Reserve Decisions Remain Crucial

The future movement of gold and silver prices is expected to depend significantly on the US Federal Reserve's interest rate decisions.

Growing concerns over inflation in the United States have strengthened speculation that the Federal Reserve could consider raising interest rates. Market reports suggest that investors are increasingly concerned about the possibility of a 50-basis-point rate hike at the Fed's upcoming meeting next month.

Higher interest rates can strengthen the US dollar and increase returns on American bonds, putting pressure on precious metals.

A stronger dollar makes gold more expensive for buyers using other currencies, while attractive bond yields can reduce investor demand for gold and silver, which do not generate regular income.

Silver Prices: Important Levels to Watch

Silver's outlook also remains cautious despite the recent recovery.

According to market analysis, silver needs to sustain levels above $52 per ounce in the international market to gain stronger momentum. A decline below $49 could potentially push prices towards $46.50 per ounce.

Technical indicators suggest that silver's Relative Strength Index (RSI) is around 32, indicating that the metal is approaching oversold territory. This could create opportunities for buying after a prolonged decline, although strong bullish signals have yet to emerge.

MCX Silver: ₹1.88 Lakh and ₹1.78 Lakh Key Levels

In the domestic market, ₹1,88,000 per kilogram is considered an important resistance level for MCX silver. Sustaining above this level could help prices stabilise.

On the downside, a break below ₹1,78,000 per kilogram could open the possibility of a further decline towards ₹1,72,000 per kilogram.

Weakness in the Indian rupee is providing some support to domestic gold and silver prices, but it has not completely offset the pressure from international markets.

Should Investors Buy Gold and Silver Now?

With gold and silver recovering from their recent lows, investors are closely watching whether the rebound can continue.

However, experts advise caution rather than rushing into fresh investments. US inflation trends, Federal Reserve decisions, dollar movements and key technical levels could influence the next direction of precious metal prices.

Investors should carefully assess market conditions and their financial goals before making investment decisions.