MUMBAI– Gold and silver prices advanced on the Multi Commodity Exchange (MCX) on Friday, buoyed by a softer U.S. dollar and strong global cues that bolstered demand for precious metals. Steady buying in the domestic spot market also supported prices.
On the MCX, gold December futures rose 0.38 percent to Rs 1,20,951 per 10 grams, while silver December futures traded nearly flat. The U.S. dollar index slipped more than 0.20 percent during the session, making gold cheaper for holders of other currencies.
Since gold is denominated in dollars, weakness in the U.S. currency typically drives higher global demand.
In Thursday’s session, gold hit an all-time high of Rs 1,23,677 per 10 grams, while silver touched a new peak of Rs 1,53,388 per kilogram. Analysts said the rally in gold has been fueled by geopolitical uncertainty, global fiscal stress, and expectations of monetary easing by the U.S. Federal Reserve.
Investor sentiment strengthened further amid speculation that the Fed may implement a 25-basis-point rate cut in October, with a 95 percent probability, followed by another cut in December with an 82 percent likelihood, according to traders.
U.S. gold futures were poised to log their eighth consecutive weekly gain, driven by hopes of rate cuts, political instability in Japan and France, and the continuing government shutdown in Washington.
“Gold fell below $4,000 per ounce after briefly surpassing that level, marking its sharpest decline in two months,” market experts said. “Profit-taking and a rebound in the dollar offset safe-haven buying linked to the U.S. shutdown, Japanese fiscal worries, and France’s political turmoil. The Gaza ceasefire between Hamas and Israel also eased safe-haven demand,” they added.
Meanwhile, oil prices slipped 1.6 percent to near $65 per barrel as easing Middle East supply concerns and higher U.S. inventories weighed on sentiment, according to EIA data. (Source: IANS)
