Gold prices on Multi Commodity Exchange of India (MCX) opened lower on Friday, following weakness in international bullion prices amid a strong dollar. Silver prices also declined over half a percent.
MCX gold rate opened 0.29% lower at ₹1,21,148 per 10 grams as against its previous close of ₹1,21,508 level. MCX silver price opened 0.47% lower at ₹1,48,140 per kg as compared to its previous close of ₹1,48,840 level.
At 9:05 AM, MCX gold price was trading lower by ₹208, or 0.17%, at ₹1,21,300 per 10 grams, while MCX rate was down by ₹502, or 0.34%, at ₹1,48,338 per kg.
In the global markets, prices fell as the dollar firmed on uncertainty over further Federal Reserve rate cuts, although bullion was still on track for its third straight monthly gain.
Spot gold prices fell 0.5% to $4,004 per ounce. Bullion has gained 3.9% so far this month. US gold futures for December delivery were steady at $4,016.70 per ounce.
The US dollar index held near its highest level in three months against its rivals, making bullion more expensive for other currency holders.
“Gold prices fell, set for a second straight weekly loss, pressured by fading expectations of Federal Reserve rate cuts and a US-China trade deal. Still, some uncertainty remains over the durability of the deal. Nevertheless, the metal remained on track for a monthly gain and is up about 50% this year, supported by strong central bank demand,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
On Wednesday, the US central bank cut interest rates by 25 bps for the second time this year, to a target range of 3.75% – 4.00%. However, remarks from Fed Chair Jerome Powell scaled back bets of a rate cut in the next policy meeting in December.
Markets are now pricing in a 74.8% probability of a 25-basis-point cut from the Fed in December compared with a 91.1% chance a week ago, according to the CME Group’s FedWatch tool.
Meanwhile, US President Donald Trump said he had agreed with Chinese President Xi Jinping to trim tariffs on China in exchange for Beijing cracking down on the illicit fentanyl trade, resuming US soybean purchases and keeping rare earths exports flowing.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.42% to 1,040.35 tons on Thursday from 1,036.05 tons on Wednesday, Reuters reported.
The World Gold Council reported that central banks bought 220 tons of gold in Q3, up 28% from the previous quarter, led by Kazakhstan, while Brazil made its first purchase in over four years, Trivedi noted.
Gold Price Outlook
According to Trivedi, MCX gold price for December expiry may stay range bound from ₹1,20,700 to 1,21,700 per 10 grams.
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