Gold prices in the national capital declined by ₹600 to ₹1,26,100 per 10 grams on Friday, tracking a weak trend in overseas markets, according to the All India Sarafa Association. Gold of 99.5% purity also slipped by ₹600 to ₹1,25,500 per 10 grams (inclusive of all taxes).
Silver prices witnessed a steeper fall, tumbling by ₹2,000 to ₹1,56,000 per kilogram (inclusive of all taxes) in the local bullion market.
Global Market Pressure
In the international market, spot gold was trading 0.38% lower at $4,061.91 per ounce, while silver futures dropped 2.13% to $49.56 per ounce.
Renisha Chainani, Head of Research at Augmont, said that better-than-expected US jobs data has reinforced expectations that the Federal Reserve will not cut interest rates in December, leading to subdued trading in precious metals.
The US Labor Department’s report—delayed due to the federal government shutdown—showed that nonfarm payrolls jumped by 119,000 in September, more than double the forecast of 50,000.
Rupee Fall Helps Domestic Futures Rebound
Despite weak global cues, gold futures on MCX recovered in the second half of the session following a sharp depreciation in the rupee against the US dollar.
- The most-traded December contract gained ₹1,168 (0.95%) to ₹1,23,895 per 10 grams.
- The far-month February contract rose ₹1,071 (0.86%) to ₹1,25,405 per 10 grams.
Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities, said:
“Gold traded highly volatile as Comex gold fell 1% to $4,035—down $41—while MCX gold rose due to a sharp rupee depreciation of nearly 1% from 88.70 to 89.60.”
He added that the weak rupee offset global pressure, keeping domestic prices supported despite the downturn abroad. Stronger-than-expected US payroll data reduced hopes of a December rate cut, weighing on sentiment.
Trivedi expects gold to remain highly volatile, moving within a range of ₹1,20,000–₹1,24,000 per 10 grams.