Gold Rates Dip to ₹1.22 Lakh per 10 Gms on MCX, While Silver Prices Decline Over 1%

Gold prices on the Multi-Commodity Exchange of India (MCX) saw a decline on Friday, reflecting weakness in international prices. The MCX gold rate opened 0.28% lower at ₹1,22,373 per 10 grams, while silver prices fell by over 1%, starting at ₹1,53,750 per kg. By 9:10 AM, gold was trading at ₹1,22,442, down by ₹285, or 0.23%, and silver at ₹1,52,433, down by ₹1,718, or 1.11%. The movement aligns with a broader trend observed in global markets, where spot gold prices slipped slightly to $4,072.87 per ounce, amid mixed sentiments on economic data from the U.S.

The primary driver behind the recent price movements is the falling expectations of an interest rate cut by the U.S. Federal Reserve following a stronger-than-expected jobs report. The data indicated an increase in nonfarm payrolls that more than doubled expectations, while the unemployment rate rose to 4.4%, the highest since October 2021, albeit with higher-than-anticipated wage growth. These developments suggest a cooling yet stable labor market, leading to heightened speculation that the Fed may remain cautious about reducing interest rates. In parallel, easing global geopolitical tensions have also lessened demand for traditional safe-haven assets.

Short-term outlook for traders and investors remains bearish, with projections suggesting the MCX gold price could drop to the ₹1,22,000 – ₹1,21,800 range over the near term. Analysts indicate support levels for gold between ₹1,22,050 – ₹1,21,480 with resistance at ₹1,23,050 – ₹1,23,700. For silver, support is noted at ₹1,53,050 – ₹1,52,350 and resistance at ₹1,55,140 – ₹1,55,980. With the recent shift in market sentiment and the strong performance of the U.S. dollar, traders may need to reassess positions and strategy, given the increased uncertainty surrounding potential future Fed actions.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)