Gold and silver futures rose on the Multi Commodity Exchange of India (MCX) on Friday, October 16, recovering after the previous session’s sharp sell-off, as a weaker US dollar and lower Treasury yields supported bullion prices.
MCX gold futures for December 4 delivery rose 0.63% to ₹1.48 lakh per 10 grams, while silver futures gained 1.30% to ₹2.13 lakh per kilogram.
In international markets, gold was up 0.06% at $4,173.39 per ounce, while silver rose 0.46% to $57.68, according to data shared by Gaurav Garg, Head of Research at Lemonn.
What is driving the recovery?
Lower US Treasury yields and a softer dollar have supported precious metals as investors assess the outlook for US interest rates. Recent comments by Federal Reserve Chair Kevin Warsh offered no clear indication of an immediate rate hike, although inflation data and further policy guidance remain important drivers.
For domestic prices, the rupee-dollar exchange rate also matters. A weaker rupee can cushion the impact of falling international gold prices, while a stronger rupee can limit gains in India.
What levels should investors watch?
Vikram Subburaj, CEO of Giottus.com, said gold needs to sustain above ₹1.48 lakh per 10 grams to strengthen its recovery. For silver, holding above ₹2.08 lakh per kilogram and moving decisively beyond ₹2.11 lakh would support further momentum.
However, the rebound alone does not confirm a trend reversal, and prices could remain volatile amid changing global cues.
What about gold ETFs?
Separately, some fund houses have restricted fresh subscriptions to gold exchange-traded funds (ETFs).
Nirpendra Yadav, Senior Research Analyst at Bonanza, said these curbs do not necessarily indicate weaker investor sentiment, as existing holdings continue to track domestic gold prices.
The restrictions appear aimed at moderating investment-driven gold demand amid concerns over gold imports and pressure on the rupee. Investors should check individual scheme announcements to understand how restrictions affect fresh subscriptions, existing holdings and redemptions.
Going forward, bullion prices will depend on US interest-rate expectations, dollar movements, geopolitical uncertainty and currency fluctuations.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.