NEW DELHI, India — Gold prices declined sharply on Friday, tracking weakness in global markets as expectations for a near-term U.S. Federal Reserve rate cut continued to fade. The retreat also followed reduced safe-haven buying after the U.S. government reopened following a record 43-day shutdown.
On the Multi-Commodity Exchange (MCX), December gold futures opened lower and remained under pressure throughout the session, falling by Rs 1,186, or 0.94 percent, to settle at Rs 1,25,573 per 10 grams. Silver futures for December delivery also slipped, dropping 1.09 percent, or Rs 1,690, to Rs 1,60,780 per kilogram.
According to India Bullion and Jewellers Association (IBJA) data, 24-carat gold was priced at Rs 1,25,478 per 10 grams at mid-day, down from Rs 1,26,554 on Thursday.
Market sentiment shifted after traders scaled back expectations for a December rate cut, now assigning roughly a 50 percent probability of a 25-basis-point reduction. Projections for 2026 remain unchanged. The reopening of the U.S. government eased concerns around missing economic data, reducing safe-haven interest in precious metals.
Earlier in the week, gold had surged amid a weaker dollar, increased haven buying, and seasonal demand ahead of India’s peak wedding period. Analysts said gold and silver were on track for their strongest weekly performance in a month due to uncertainty stemming from delays in U.S. economic data.
However, gains were limited as Federal Reserve officials signaled no immediate need for additional monetary easing. Strong physical demand from China and Australia continued to support prices throughout the month.
Rahul Kalantri, Vice President of Commodities at Mehta Equities Ltd, said gold has support at Rs 1,25,750–1,24,980 and resistance at Rs 1,27,750–1,28,400. Silver’s support levels were at Rs 1,60,950–1,59,400, with resistance expected at Rs 1,63,850–1,64,900. (Source: IANS)
