Stories
Gold and silver expected to trade range-bound as rupee weakness supports prices
- •Gold and silver prices are anticipated to trade within a range with a slightly positive bias due to rupee weakness cushioning domestic bullion against global fluctuations.
- •Traders will closely monitor upcoming inflation data from India, China, and the US, alongside trade data and Federal Reserve speeches for future rate hike cues.
- •MCX gold futures for December delivery rose nearly 1 per cent last week, supported by a softer US dollar, easing bond yields, and geopolitical tensions.
- •Comex gold futures recovered to above USD 4,200 per ounce driven by bargain buying at lower levels and a consolidating US dollar.
- •Ongoing geopolitical uncertainties, including the unresolved US-Iran conflict, continue to act as a key driving factor for bullion markets.
Key Questions Answered
Gold and silver prices are expected to trade in a range with a slightly positive bias as rupee weakness cushions domestic bullion against global fluctuations. Additionally, investor sentiment will be shaped by upcoming inflation data from India, China, and the US, alongside trade data from Beijing and cues on Federal Reserve interest rate decisions.
On the Multi Commodity Exchange (MCX), gold futures for December delivery rose by Rs 1,109, or nearly 1 per cent, to settle at Rs 1.51 lakh per 10 grams. Meanwhile, silver ended the week marginally lower, dropping by Rs 122 to finish at Rs 2.25 lakh per kilogram.
A weaker rupee increases the landed cost of imported bullion, helping MCX gold remain supported even when international prices face pressure from global market fluctuations. This currency impact provides an additional cushion that helps protect domestic prices against moderate corrections in Comex gold.
