Gold October futures pricing commenced the session with an increase of Rs 539 or 0.5%, reaching Rs 1,09,520 per 10 grams on the MCX during Friday’s trading, buoyed by anticipations of a forthcoming rate cut by the U.S. Federal Reserve next week. In the interim, silver December futures reached a new all-time high of Rs 1,28,294/kg, marking an increase of nearly 1%. Gold prices in international markets increased on Friday, positioning themselves for a fourth consecutive weekly gain.
This rise was driven by apprehensions regarding a weakening U.S. labor market, which overshadowed inflation concerns in anticipation of a Federal Reserve rate cut expected next week. Spot gold increased by 0.4%, reaching $3,647.76 per ounce as of 0211. Bullion has appreciated by 1.7% thus far this week. Meanwhile, U.S. gold futures for December delivery experienced an increase of 0.4%, reaching a price of $3,686.50. On Thursday, gold and silver concluded with varied outcomes in both domestic and international markets. The October futures contract for gold concluded at Rs 1,08,981 per 10 grams, reflecting a marginal decline of 0.005%. In contrast, the December futures contract for silver settled at Rs 1,26,938 per kilogram, marking an increase of 1.40%. Gold and silver maintained a stable trading pattern in anticipation of the upcoming FOMC monetary policy meetings next week. The U.S. inflation data aligned closely with market expectations, thereby supporting the anticipated rate cuts in September. The U.S. Consumer Price Index registered a 0.4% increase in August, surpassing the anticipated 0.3%, and significantly exceeding the July figure of 0.2%.
The Consumer Price Index on a year-over-year basis registered at 2.9%, an increase from the July figure of 2.7%. The U.S. unemployment claims experienced a notable increase, reaching 263,000, surpassing the anticipated figure of 235,000. The Federal Reserve is expected to reduce its primary interest rate by 25 basis points on Wednesday, with a minimal chance of a 50-basis-point cut. Non-yielding bullion, frequently viewed as a safeguard against inflation and economic uncertainties, typically exhibits strong performance in a low-interest-rate environment. “A disappointing job market may lead the U.S. Fed to consider a rate cut in next week’s policy meetings; however, elevated inflation remains a concern for the U.S. Fed. The U.S. 10-year bond yield has fallen below 4.0% for the first time since May 2025, which may also bolster gold and silver prices,” stated Manoj Kumar Jain.
Today, the U.S. Dollar Index, DXY, was positioned around the 97.65 level, reflecting an increase of 0.12 or 0.12%. “We anticipate that gold and silver prices will exhibit volatility during today’s session, influenced by fluctuations in the dollar index and ongoing geopolitical tensions. Gold is projected to trade within a range of $3,622-3,717 per troy ounce, while silver is expected to fluctuate between $41.40-42.80 per troy ounce,” he added.