The gold price commenced the day at Rs 1,34,027 per 10 grams on the MCX, reflecting a decrease of Rs 494 or 0.37%. With the metal maintaining its position above the significant Rs 1.34 lakh threshold and international indicators suggesting a possible change in monetary policy, attention is now focused on the future trajectory of bullion’s impressive rally. Meanwhile, silver futures commenced the day at Rs 2,03,448 per kg, reflecting a decline of Rs 117 or 0.06% on the MCX, following a recent peak of Rs 2,07,833. Despite today’s minor pullback, silver maintains its luster in 2026, boasting year-to-date gains of 125%, which surpass even gold’s impressive performance.
Gold prices declined on Friday in response to US inflation data that came in below expectations, reducing the metal’s attractiveness as a safeguard against increasing prices, while appreciation of the dollar exerted additional pressure on the bullion market. Spot gold experienced a decline of 0.3%, trading at $4,319.07 per ounce as of 01:47, while US gold futures fell by 0.4%, settling at $4,346.70. At the same time, spot silver saw a decrease of 1% to $64.79 per ounce, pulling back after reaching a record high of $66.88 earlier in the week. Silver has experienced a remarkable increase of 125% year-to-date, considerably surpassing gold, which has recorded a 65% annual gain.
The US dollar remained close to one-week highs, rendering metals priced in greenbacks less appealing to holders of alternative currencies. Data released on Thursday indicated that US consumer prices increased by 2.7% year-on-year in November, falling short of the 3.1% projection in a poll of economists. Despite the softer inflation print, households continued to face rising costs for essential items such as beef and electricity. The data has slightly increased market expectations that the Federal Reserve could initiate interest rate cuts as early as its January meeting, following earlier figures showing the US unemployment rate rising to 4.6%, above the expected 4.4% and the highest since September 2021.
Last week, the Federal Reserve executed its third and final 25 basis point interest rate cut of the year, a development that typically supports non-yielding assets like gold by reducing the opportunity cost of holding bullion. Investors are now awaiting the release of the Personal Consumption Expenditures price index, the Fed’s preferred inflation gauge, due later today, for further policy signals. Adding to market focus, US President Donald Trump said he had interviewed Federal Reserve Governor Christopher Waller as a potential successor to Jerome Powell, praising him as “great,” while Waller has reiterated that the Fed retains scope to lower rates and would “absolutely” defend the central bank’s independence if challenged.