MCX gold rises over ₹1.3 lakh /10 grams; Silver falls on weak rupee, upcoming Fed rate cut decision

On the MCX, the yellow metal contract for the April expiry stood at ₹1,32,698 per 10 grams, marking a ₹207 or 0.16% jump at around 10:50 am.

Last week, gold futures (for February) appreciated by ₹958, or 0.74%, outperforming the global prices.

However, silver contracts for the March expiry slumped by ₹1,408 or 0.77% to ₹1,82,000 per kilogram. White metal futures for May delivery fell by ₹1,392 or 0.75% to ₹1,84,201 per kilogram.

On the MCX, silver futures (for March) skyrocketed by ₹8,427, or 4.8%, during the past week.

On Friday, the white metal surged by ₹7,096, or 3.98%, to hit a record of ₹1,85,234 per kilogram, after the RBI’s Monetary Policy Committee (MPC), led by Governor Sanjay Malhotra, unanimously decided to reduce the repo rate by 25 basis points to a three-year low of 5.25%.

In the international market, Comex gold stood at $4,236.20 per ounce, down by 0.16%. Meanwhile, Comex silver declined 1% to $58.465 per troy ounce.

The cautious tone of the US economic data had investors betting on an 87% probability that the Federal Reserve will opt for a quarter-point rate cut at its December meeting this week, on December 10, according to the CME Group's FedWatch.

Meanwhile, the rupee depreciated 16 paise to 90.11 against the US dollar in early trade on Monday, weighed down by elevated crude oil prices and persistent foreign fund outflows.

Forex traders said strong dollar demand from corporates, importers, and foreign portfolio investors pressured the rupee.

At the interbank foreign exchange, the rupee opened at 90.07 against the US dollar, then dropped to 90.11, down 16 paise from its previous close.

Investors will also be on the lookout for macroeconomic data from China and the US, as well as the performance of the rupee.