Gold prices opened lower on Multi Commodity Exchange of India (MCX) on Friday tracking weakness in global bullion prices as the dollar strengthened.
MCX gold rate for December futures opened 0.06% lower at ₹1,13,795 per 10 grams as against its previous close of 1,13,871. MCX silver price opened 0.13% lower at 1,36,876 as compared to its previous close of ₹1,37,056 level.
At 9:10 AM, MCX gold rate was trading lower by ₹29, or 0.03%, at ₹1,13,900 per 10 grams. MCX silver rate was down by ₹254, or 0.19%, at ₹1,36,802 per kg.
In the international market, gold prices fell after stronger-than-expected US economic data cast doubt on the Federal Reserve’s rate cut outlook, bolstering the dollar.
Spot gold price declined 0.2% to $3,741.21 per ounce, though the metal was up 1.6% so far this week. US gold futures for December delivery were unchanged at $3,771.30. Spot silver fell 0.6% to $44.96 per ounce.
The US dollar index hovered near a three-week high, making greenback-priced bullion more expensive for overseas buyers.
“Gold and silver showed very high price volatility and gained again as the US dollar firmed following upbeat economic data, which reduced bets on an imminent Federal Reserve rate cut. Gold retained safe-haven demand after President Trump announced new tariffs effective October 1 on several imports, including branded drugs and heavy-duty trucks,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
Investors remain cautious, balancing resilient US growth against inflation risks and escalating trade tensions.
Focus now shifts on the US personal consumption expenditures (PCE) price index data, the Fed’s preferred inflation measure, which is expected to show a 0.3% month-on-month rise and a 2.7% year-on-year jump in August, per a Reuters poll.
Meanwhile, Fed policymaker Stephen Miran advocated for aggressive rate cuts to shield the labour market, downplaying inflation risks from tariffs, Reuters reported. Safe-haven bullion tends to perform well in a low-interest-rate environment.
Gold Price Outlook
Kalantri said gold prices have support at $3,715 – $3,685, while resistance at $3,775 – $3,790. Silver price has support at $44.40 – $44.00, while resistance is at $45.35 – $45.60.
“MCX gold price has support at ₹1,12,000 – ₹1,11,580, while resistance at ₹1,13,250 – ₹1,13,700. Silver price has support at ₹1,36,450 – ₹1,35,750, while resistance at ₹1,37,850 – ₹1,38,600,” he added.
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