Gold and silver prices continued their upward trend on Wednesday, rising by more than half a per cent in early trade.
The gains came a day after both metals posted over 1 per cent growth, supported by strong demand in the spot market and rising expectations of an interest rate cut by the US Federal Reserve.
During the early trade, MCX gold December futures were trading 0.50 per cent higher at Rs 1,25,835 per 10 grams.
MCX silver December futures were also up 0.91 per cent at Rs 1,57,750 per kg.
"In INR gold has support at Rs1,24,350-1,23,580 while resistance at Rs1,25,850-1,26,500. Silver has support at Rs1,54,850-1,53,600 while resistance at Rs1,57,110, 1,58,000," analysts said.
In the international market, gold prices touched a near two-week high as new US economic data weakened the dollar and strengthened hopes of a Fed rate cut next month.
The dollar index slipped to around 99.60, its lowest level in a week, making gold more attractive to global buyers.
Meanwhile, the benchmark 10-year US Treasury yield hovered near the one-month low it had hit in the previous session.
Fresh economic signals from the US added to the optimism. Retail sales for September grew by just 0.2 per cent, slower than the 0.6 per cent rise seen in August.
The latest Producer Price Index (PPI) data also matched forecasts, showing a 0.3 per cent increase for the month.
Both reports were released on Tuesday after being delayed due to a record 43-day government shutdown that had halted the release of several key economic indicators.
While the possibility of a Fed rate cut continues to support gold prices, geopolitical factors could limit the metals' upward movement.
US President Donald Trump has announced parallel missions to Moscow and Kyiv to push forward a US-backed peace plan, raising hopes of progress toward ending the Russia-Ukraine conflict.
If tensions ease, safe-haven demand for gold may soften. Analysts said that gold and silver remain firm as markets await further clarity on US monetary policy and global geopolitical developments.
(With inputs from IANS)
