Gold and silver futures rebounded in early domestic trading on Wednesday following a volatile session, as investors weighed geopolitical risks and supply disruptions in the Gulf against policy guidance ahead of upcoming central bank meetings.

On the Multi Commodity Exchange (MCX), precious metals posted early morning gains:Gold Futures: Rose 0.52% to trade at Rs 151,590 per 10 grams.Silver Futures: Advanced 1.28% to reach Rs 235,100 per kg.The morning rebound follows a negative settlement in the previous session across global and domestic markets.

On Monday, bullion prices closed lower across both international and domestic benchmarks amid a volatile trading session. In the international futures market, December gold dropped 0.88% to settle at $4,351.90 per troy ounce, while December silver posted a larger decline of 1.36%, ending at $64.138 per troy ounce. Reflecting the global downtrend, domestic contracts on the MCX also ended in negative territory, with October gold falling 1.02% to settle at Rs 1,51,230 per 10 grams and December silver sliding 0.97% to close at Rs 2,32,690 per kg.

The precious metals market remains caught between inflationary headwinds and monetary policy expectations.

• Crude Oil Pressures: Elevated crude oil prices, spurred by Gulf supply concerns, continue to stoke global inflation worries. Higher inflation expectations have bolstered bets on sustained interest rates, increasing the opportunity cost of holding non-yielding bullion. Higher crude oil prices driven by Gulf supply concerns have added to inflation worries, which could fuel rate expectations and weigh on non-yielding metals.
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• Key Events Ahead: Volatility is expected to persist as markets track movements in the US dollar index, crude oil, and policy announcements from the US Federal Reserve and the Bank of Japan.