MCX Gold surges to ₹1.22 lakh/10 grams, Silver also rises on Fed’s cautious stance, US-China truce

Gold futures fluctuated between green and red on the Multi-Commodity Exchange (MCX) on Friday, October 31, in a volatile movement in futures trade, as investors assessed the impact of the Federal Reserve's cautious stance on rate cuts and a temporary truce in US-China trade tensions.

At around 11:42 am, gold futures for December delivery were trading ₹30 or 0.02% higher at ₹1,21,538 per 10 grams in a business turnover of 13,223 lots on the MCX.

Yellow metal futures for the February 2026 delivery were trading at ₹1,22,866 per 10 grams, up by ₹104 or 0.08%.

Similarly, silver futures for December delivery increased by ₹490, or 0.33%, to ₹1,49,330 per kilogram in 20,270 lots on the MCX.

In the international market, Comex gold futures for December delivery were trading marginally higher at $4,020.67 per ounce, while silver slipped 0.37% to $48.43 an ounce.

"Gold prices were trading around $4,020 per ounce on Friday, set for a second straight weekly loss, pressured by fading expectations of Federal Reserve rate cuts and a US-China trade deal," an analyst told PTI.

The US and China reached a trade truce with a one-year deal on rare earths and critical minerals, as President Donald Trump cut fentanyl tariffs to 10% and Beijing agreed to curb production and resume US soybean purchases.

Meanwhile, Federal Reserve Chair Jerome Powell said another rate cut in December is not assured, keeping the US dollar near a three-month high. The stronger dollar made gold costlier for foreign buyers. On Wednesday, the FOMC reduced the borrowing rate to a range of 3.75%-4%.

According to the World Gold Council (WGC), global central banks purchased 220 tonnes of gold in the third quarter of 2025, marking a 28% increase from the previous quarter. Kazakhstan led the buying spree, while Brazil made its first purchase in over four years.

However, India's gold demand fell 16% by volume in the July-September quarter of 2025 as record-high prices dampened consumer appetite, though investment buying surged on safe-haven appeal, the industry body said on Thursday.

The total gold demand declined to 209.4 tonnes in the third quarter from 248.3 tonnes a year earlier, it added.

Gold jewellery demand, which accounts for the bulk of consumption in the world's second-largest bullion market, dropped 31% to 117.7 tonnes from 171.6 tonnes. But the value of jewellery purchases remained flat at around ₹1,14,270 crore as buyers adjusted to elevated price levels.

Investment demand showed "remarkable strength", rising 20% by volume to 91.6 tonnes and surging 74% in value terms to ₹88,970 crore from ₹51,080 crore, the WGC said.

"This highlights a deepening strategic commitment among Indian consumers to gold as a long-term store of value," Sachin Jain, World Gold Council Regional CEO for India, said.