Gold prices on the Multi-Commodity Exchange of India (MCX) declined on Friday, following weakness in international prices. The primary driver was falling expectations of an interest rate cut by the US Federal Reserve. Signs of easing global geopolitical tensions also contributed. Silver prices slipped more than 1%.
MCX gold rate opened 0.28% lower at ₹1,22,373 per 10 grams (previous close: ₹1,22,727). MCX silver prices opened 0.26% lower at ₹1,53,750 per kg (previous close: ₹1,54,151).
At 9:10 AM, the MCX gold price was trading lower by ₹285, or 0.23%, at ₹1,22,442 per 10 grams. MCX silver rate was at ₹1,52,433 per kg, down by ₹1,718, or 1.11%.
In the global markets, gold prices fell as a stronger-than-expected US jobs report reinforced expectations that the Federal Reserve will refrain from cutting interest rates at its December meeting.
Spot gold price fell 0.1% to $4,072.87 per ounce, while US gold futures for December delivery gained 0.3% to $4,071.90 per ounce. Spot silver slipped 0.5% to $50.35 per ounce.
The US dollar was on track for its strongest week in more than a month. A stronger dollar makes gold priced in greenbacks more expensive for holders of other currencies.
The US Labour Department report showed that September nonfarm payrolls increased by 119,000, more than double the estimated increase of 50,000.
Traders now see nearly a 39% chance for a Fed rate cut next month.
