NEW DELHI– Gold prices opened slightly lower on the Multi Commodity Exchange (MCX) Thursday, tracking global cues as investors awaited fresh U.S. economic data for direction on Federal Reserve policy.
December gold futures on MCX slipped by Rs 122, or 0.11 percent, to Rs 1,13,525 per 10 grams, compared to the previous close of Rs 1,13,647.
Silver initially dropped about Rs 1,000 per kg at the open but rebounded 0.31 percent to Rs 1,34,415 per kg by 9:15 a.m.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold stood at Rs 11,358 per gram at 10:10 a.m.
In global markets, spot gold hovered near $3,734 an ounce, while U.S. December gold futures traded around $3,765 as the dollar index edged down 0.1 percent.
Analysts noted that bullion continues to find support from strong central bank buying and steady inflows into exchange-traded funds. However, if global trends weaken, MCX October gold futures could test Rs 1,12,000, they cautioned.
Federal Reserve Chair Jerome Powell’s recent cautious remarks on inflation, the labor market, and potential rate cuts may act as a ceiling on bullion’s gains.
“The People’s Bank of China is leveraging the Shanghai Gold Exchange to encourage central banks from friendly nations to purchase and store bullion within its borders. On the data front, U.S. housing numbers beat expectations, which weighed on gold prices,” said Manav Modi, Analyst – Precious Metals Research at Motilal Oswal Financial Services.
Market participants are now awaiting key U.S. data releases, including GDP, inflation, and durable goods orders, for further clarity on Fed policy.
Adding to the mix, geopolitical tensions also supported safe-haven demand. NATO warned Russia it would use “all necessary military and non-military measures” to defend itself, while U.S. President Donald Trump said Ukraine could reclaim all territory currently held by Russia. (Source: IANS)
