On the Multi Commodity Exchange (MCX), October gold futures rose ₹654, or 0.44%, to ₹1.49 lakh per 10 grams. September silver futures fell ₹792, or 0.35%, to ₹2.26 lakh per kilogram.
What’s driving gold prices?
Analysts said fresh positions in gold futures and firm international prices lent support to domestic bullion.
Globally, gold traded around $4,255 an ounce, aided by a softer US dollar and lower Treasury yields. Investors also remained focused on upcoming US economic data, particularly the non-farm payrolls report, for clues on the Federal Reserve’s interest rate outlook.
Recent weak US employment data has modestly strengthened expectations of a Fed rate cut later this year, which is generally supportive of non-yielding assets such as gold.
Why silver eased
Silver, meanwhile, saw some profit booking after recent gains. Globally, the metal traded around $62 an ounce, remaining close to multi-year highs despite Thursday’s modest decline.
Analysts said silver continues to draw support from industrial demand, particularly from the renewable energy and electronics sectors, even as near-term trading remains driven by macroeconomic data and investor positioning.
What experts say
Darshan Desai, CEO of Aspect Bullion & Refinery, said bullion remains supported by expectations around global interest rates, movements in the US dollar and continued central bank purchases. He added that silver’s industrial demand also remains favourable, although markets could remain volatile ahead of key economic data releases.
Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, said hopes of easing geopolitical tensions in the West Asia and expectations of lower US interest rates have helped underpin sentiment in precious metals, though the day’s moves remain relatively limited.
What investors should watch
The next major trigger for bullion prices is the US non-farm payrolls report, which could influence expectations for the Federal Reserve’s policy path. Traders will also monitor the US dollar, bond yields and geopolitical developments for further direction.
