NEW DELHI, India — Gold prices fell sharply on Friday, tracking a broader decline in global markets as fading expectations of a near-term U.S. Federal Reserve rate cut pressured the precious metals segment. The pullback also followed a reduction in safe-haven buying after the U.S. government reopened following a record 43-day shutdown.
On the Multi-Commodity Exchange (MCX), December gold futures opened lower and remained weak throughout the session, dropping Rs 1,186, or 0.94 percent, to settle at Rs 1,25,573 per 10 grams. December silver futures slipped 1.09 percent, or Rs 1,690, to Rs 1,60,780 per kilogram.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold stood at Rs 1,25,478 per 10 grams at mid-day, a decline from Rs 1,26,554 the previous day.
Traders sharply reduced expectations for a December rate cut, now estimating roughly a 50 percent chance of a 25-basis-point reduction. Market projections for 2026 remain unchanged. The reopening of the U.S. government eased concerns around gaps in economic data, further reducing safe-haven interest in gold.
Earlier this week, gold had risen on the back of a weaker dollar, heightened risk aversion, and strong seasonal demand ahead of India’s peak wedding season. Analysts said gold and silver were on track for their strongest weekly performance in a month, driven in part by uncertainty from delayed U.S. data.
However, the rally stalled as Federal Reserve officials signaled no immediate requirement for additional monetary easing. Strong physical demand from China and Australia continued to offer steady support through the month.
Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd, said gold has support in the Rs 1,25,750–1,24,980 range and resistance near Rs 1,27,750–1,28,400. Silver’s support levels were seen at Rs 1,60,950–1,59,400, with resistance between Rs 1,63,850 and Rs 1,64,900. (Source: IANS)
