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Below the Quote on commodities by Mr. Ashish Rajodiya, Head of Commodity at PL Capital Group

Gold and Silver Trade Flat as Markets Await Key US Inflation Data

Gold and silver were largely rangebound on Wednesday, with MCX gold holding around Rs1,52,500 per 10 grams and MCX silver flat near Rs2,39,500 per kg, as the market stayed on the sidelines ahead of this week's US inflation prints. The consolidation comes after a volatile start to the week, with both metals digesting last Friday's stronger-than-expected US jobs report, which pushed market-implied odds of a 25-basis-point Fed rate hike at the September 16 meeting to 60%, up from around 50% before the data, according to CME FedWatch. With no fresh trigger through Wednesday's session, prices have settled into a narrow range as investors wait for clearer direction.

Crude oil added to the pressure on bullion, with WTI crude holding above $92 a barrel and Brent near $97 as tensions between the US and Iran over key Middle East shipping routes kept prices elevated. Persistently high crude prices tend to stoke inflation concerns, and with inflation already a central theme heading into next week's Fed meeting, the move in oil is seen reinforcing the case for a rate hike — typically a negative for non-yielding assets such as gold and silver in short-run.

On the technical front, support for MCX gold is placed at Rs1,49,000–1,47,000, with resistance at Rs1,55,500–1,57,100. Silver has support at Rs2,31,000–2,27,000 and resistance at Rs2,43,000–2,46,000.

The next set of triggers for the market comes from the US data calendar, with the Producer Price Index and Consumer Price Index both due this week, just ahead of the Federal Reserve's policy meeting next week. A soft inflation print could reignite the recent rally, while a hot number could tilt sentiment back in favour of the dollar and pressure both metals.

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