MCX Gold surges over ₹1.28 lakh/10 grams; Silver futures also advance on Fed rate cut hopes, weak US dollar

On the MCX, yellow metal contracts for the December delivery surged ₹578 or 0.46% to ₹1,26,082 per 10 grams, at around 11:07 am.

Similarly, silver contracts for the March 2026 expiry jumped ₹1,478 or 0.91% to ₹1,63,945 per kilogram. White metal futures for December delivery stood at ₹1,67,504 per kilogram, marking a ₹1,517 or 0.91% increase, on the MCX.

In the international market, Comes Gold (February 2026) advanced 0.76% to $4,221.30 per ounce.

Comex Silver (December) jumped to an intra-day high of $54.235 troy ounces, nearing its historic high of $54.50 per ounce. per troy ounce, extending its positive run for the fifth straight day.

US economic data released during the week had investors betting on a nearly 85% probability that the Federal Reserve will opt for a rate cut in December, according to the CME Group's FedWatch.

On Wednesday, the US initial jobless claims report showed that the number of US citizens filing for unemployment benefits was at its lowest level in seven months last week.

Furthermore, confidence among the US consumers fell by 6.8 points month-on-month to 88.7 in September, while retail sales data released on Tuesday showed that US shoppers bought less from retailers in September than economists expected.

U.S. retail sales rose 0.2% in September, with recent figures suggesting a slowdown in consumer momentum.

Another report by the Bureau of Labor Statistics stated that the producer price index (PPI) for September advanced 0.3% (seasonally adjusted). Lower interest rates can worsen inflation, and higher prices are the main reason the Fed has been holding back on rate cuts.

"Traders continue to give priority to the wider run of weak demand indicators and dovish Fed commentary because the economic data mix was uneven but still consistent with policy easing," a PTI report quoted Renisha Chainani, Head - Research at Augmont, as saying.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.04% higher at 99.56, recovering from five days of fall, which pushed it to its worst weekly performance since July 21.