Gold futures commenced trading on a positive note on the MCX on Wednesday, buoyed by anticipations of a more lenient Federal Reserve following disappointing U.S. data that indicated a deceleration in consumer spending and escalating growth apprehensions. In today’s session, MCX silver futures for March 5, 2026, experienced a notable increase of 3%, climbing by Rs 6,970 to reach Rs 2,59,418 per kg. Gold futures for April 2, 2026, delivery increased by Rs 1,633, reflecting a 1% rise, bringing the price to Rs 1,58,436 per 10 grams. In international commodity markets, gold and silver prices experienced an uptick on Wednesday, coinciding with a decrease in US Treasury bond yields. This movement followed the release of data indicating that December retail sales growth had stagnated, suggesting a possible softening in the economy in anticipation of crucial jobs data.
Spot gold increased by 0.3% to $5,038.73 per ounce as of 0059, while US gold futures for April delivery advanced by 0.6% to $5,060.60 per ounce. Spot silver experienced an increase of 1%, reaching $81.49 per ounce, marking a recovery following a decline exceeding 3% in the prior session. Gold prices strengthened above $5,040 per ounce, bolstered by expectations of a more accommodative Federal Reserve following soft U.S. data that indicated slowing consumer spending and heightened growth concerns, as noted by Jigar Trivedi. Market expectations have shifted to anticipate three Federal Reserve rate cuts this year, an increase from the two projected just a week prior, as investors look forward to forthcoming U.S. jobs and inflation data for additional guidance.
Additional support has emerged from ongoing central bank acquisitions, as the PBoC has prolonged its gold purchases for a 15th consecutive month in January, amid persistent geopolitical tensions between the U.S. and Iran. Trivedi noted that MCX Gold April futures could sustain levels around Rs 1,58,000 per 10 gm, supported by a favorable international bullion trend. Silver increased by over 1.5% to approximately $82.4 per ounce, reversing losses from the prior session as disappointing U.S. economic indicators and waning confidence in U.S. assets heightened demand for safe-haven investments. December retail sales unexpectedly stalled, raising concerns over consumer spending. Attention has now turned to the delayed January U.S. jobs report, where a weaker reading is likely to further bolster precious metals.
Current market expectations indicate approximately 60 basis points of Federal Reserve easing by the end of the year. Concurrently, a shift away from dollar-denominated assets, driven by policy uncertainties in Washington, has contributed to increased demand. Nevertheless, investors exercise caution in light of the recent volatility observed in metals prices, characterized by pronounced rallies and subsequent sell-offs. Trivedi indicated that MCX Silver March futures could rise to Rs 2,65,000 per kg, given the favorable international sentiment.