Mumbai: Gold prices inched up on Friday morning, while silver slipped as traders booked profits after the metal hit a fresh record high on the MCX. During early trade, MCX gold futures for February were
trading 0.10 per cent higher at Rs 1,32,599 per 10 grams. "MCX Gold has broken out to lifetime highs, trading near Rs 1,32,776 inside a tightening ascending wedge with firm support at Rs 1,31,400," analysts stated. "The next resistance zone opens the momentum leg toward Rs 1,34,000 and above," they added.
In contrast, MCX silver futures for March were down 0.50 per cent at Rs 1,97,951 per kg. In the previous session, silver had touched an all-time high of Rs 1,98,814 per kg and ended the day with a strong 5.33 per cent gain at Rs 1,98,799. Gold February futures also saw healthy buying, closing at Rs 1,32,469 per 10 grams after rising 2 per cent. Both metals rallied after the US Federal Reserve cut its benchmark interest rate by 25 basis points and hinted at the possibility of another rate cut next year.
The dollar index also slipped to 98.30 -- making gold cheaper for global buyers and boosting demand. At the same time, the Indian rupee continued to remain at its record low against the US dollar. The weaker currency is supporting gold prices in the domestic market. Investors are now waiting for key US data, including inflation numbers and the non-farm payrolls report due next week. These indicators will help shape expectations around the Fed’s next policy moves.
"The US Federal Reserve’s decision to cut key interest rates by 25 bps to 3.50 per cent-3.75 per cent amid persistent inflation has reinforced bullish sentiment in precious metals," market watchers stated. Lower rates reduce the opportunity cost of holding non-yielding assets like gold and silver, attracting fresh investment flows. "With bullion already at record highs, this policy shift adds momentum to the rally, as investors seek safe-haven assets amid economic uncertainty and inflationary pressures," analysts mentioned.
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