MCX gold rises to ₹1.57 lakh/10 grams; silver surges nearly 2% as Fed appears split on futures rate cuts

At around 1:13 pm, the safe-haven metal contract stood at ₹1,56,901 per 10 grams, reflecting a ₹1,140 or 0.73% increase.

In the global markets, however, COMEX gold (April delivery) declined as much as 0.75% to the session’s low of $4,971.50 per ounce. At the time of writing, it was trading 0.04% lower at $5,007.40 per ounce.

On the MCX, silver futures for March delivery surged as much as ₹3,881 or 1.59% to the day’s peak of ₹2,48,149 per kilogram. The white metal contract was trading at ₹2,47,559 per kilogram, up by ₹3,291 or 1.35% at the time of writing.

Internationally, COMEX silver (March expiry) gained 0.7% to an intraday high of $78.135 per troy ounce. It was at $78.135 per troy ounce, marking a 0.23% increase at the time of writing.

Domestic precious metal prices surged, as the MCX withdrew the additional margin of 3% levied in gold futures (all contracts of all variables) and 7% on all futures contracts, effective February 19.

In the meeting minutes of the Federal Open Market Committee (FOMC) from January, posted on Wednesday, US federal officers appeared unanimous in keeping the policy rates unchanged at 3.50%-3.75% last month.

However, they appeared divided over their next step, with the minutes noting that “a two-way description of the path of policy could be supported,” signaling not only the chances of rate cuts but also hikes.

Now, market participants will be on the lookout for the Personal Consumption Expenditures Price Index (PCE) and core PCE data, which is set to be reported on Friday. The Federal Reserve prefers PCE over the Consumer Price Index (CPI) data as a measure of inflation. The recent report showed core CPI rising at the lowest pace since March 2021.

On the geo-political front, ccording to media reports, the United States issued new threats against Iran, despite the conclusion of Iran-US nuclear talks in Geneva on Tuesday, with Iran saying that it reached an understanding with the US on the main “guiding principles” to resolve their disputes.

Furthermore, the US-brokered talks between Ukraine and Russia came to an end on Wednesday without a breakthrough.