MCX gold futures trade higher after ECB cuts interest rates

MCX gold futures were trading higher on Friday after the European Central Bank cut interest rates. Following the decision, global markets will now have their eyes on the upcoming interest rate decision by the US Federal Reserve.

Precious metals

Gold futures on the MCX were trading higher by 0.41% at ₹73,121 per 10 grams. Gold prices hit their highest level since July on Friday.

Meanwhile, silver futures on the MCX saw decent gains of 0.85% and were trading at ₹87,825 per kg. The metal had hit an intraday high of ₹88,068 and was off its day’s low of ₹87,825.

Base metals

Base metals were trading mixed on Friday with copper futures on the MCX trading higher by 0.14% at ₹799.80. Meanwhile, zinc futures were down with losses of 0.13% to trade at ₹264.10. Lead futures were trading lower by 0.41% at ₹184.25.

Crude oil and natural gas

MCX crude oil futures on Friday were trading higher by nearly 1% at ₹5,858 per barrel. After clocking in losses for 4 consecutive weeks, the commodity is in line to close the week with gains.

Natural gas futures on the MCX were flat on Thursday and were trading at ₹199.5. The commodity is trading at its highest level since July.

Economic data

The European Central Bank on Thursday cut interest rates to 3.5%. However, the bank also lowered its growth forecasts. Meanwhile, India’s consumer price index (CPI) data for August came in at 3.65%.

The United States reported a growth in initial jobless claims which is in line with the softening labour market conditions. Markets will be keeping their eye on payroll data in the coming month for further hints about the Fed’s stance on interest rates. Going ahead, traders and investors will be keeping tracking the interest rate decision of the Federal Reserve in the coming week.