New Delhi: Gold prices ended their three-day losing streak on Friday, rebounding by Rs 572 to Rs 1,09,624 per 10 grams in the domestic futures market, driven by value buying and firm global cues following the US Federal Reserve’s rate cut.
On the Multi Commodity Exchange (MCX), gold futures for October delivery rose Rs 572, or 0.52%, to Rs 1,09,624 per 10 grams, with a turnover of 12,685 lots. The December contract also gained Rs 516, or 0.47%, to Rs 1,10,650 per 10 grams.
“Gold prices experienced sharp swings, with profit booking followed by a swift recovery. The US Federal Reserve resumed rate cuts and signalled potential further easing, but tempered its message with warnings of persistent inflation, creating uncertainty about the pace of future cuts,” said Manav Modi, Analyst – Precious Metals Research, Motilal Oswal Financial Services Ltd.
Silver prices mirrored gold’s gains. December silver futures surged Rs 1,668, or 1.31%, to Rs 1,28,800 per kilogram in 17,935 lots, while the March 2026 contract rose Rs 1,573, or 1.22%, to Rs 1,30,224 per kilogram.
In the international market, December gold futures climbed USD 13.40, or 0.36%, to USD 3,691.70 per ounce, while silver futures rose 1.22% to USD 42.67 per ounce.
On Wednesday, the US Federal Reserve cut its benchmark rate by 25 basis points to 4–4.25%, marking its first reduction since December. Policymakers projected two additional cuts in 2025 and one in 2026, reflecting a cautious approach. Fed Chair Jerome Powell described the move as a risk-management measure in response to a weakening labor market, emphasizing a “meeting-by-meeting” stance on rates.
The Fed’s cautious outlook prompted some investors to book profits after bullion surged to record highs on Thursday. “The dot plot showed no change in rate cut probabilities for 2026 and 2027, while growth forecasts were raised, keeping markets on edge regarding future monetary policy,” Modi added.
Meanwhile, Swiss gold exports to China jumped 254% in August compared with July. While the Fed cut rates after an eight-month pause, the Bank of England and the People’s Bank of China kept their rates unchanged in recent announcements.
Gold has surged nearly 39% so far this year, supported by expectations of monetary easing, geopolitical uncertainty, and robust central bank purchases.
