MCX Gold surges to nearly ₹1.26 lakh/10 gram; Silver also rises on increased Fed rate cut hopes

On the MCX, the yellow metal contract for the February 2026 expiry surged ₹730 or 0.57% to ₹1,27,725 per 10 grams, at around 10:57 am.

Similarly, the silver contract for the December expiry advanced by ₹2,215 or 1.38% to ₹1,62,236 per kilogram. White metal futures for March 2026 delivery stood at ₹1,58,190 per kilogram, up by ₹1,869 or 1.20%.

In the international market, Comex gold increased 0.57% to $4,163.70 per ounce, and Comex silver was at $51.635 per troy ounce, marking a 1.07% jump.

US economic data released on Tuesday 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.

Private companies lost an average of 13,500 jobs per week over four weeks ending November 8, increasing from the 2,500 per week in the last update a week ago, as per a CNBC report, which cited ADP payroll data.

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.

The recent figures suggest a slowing of consumer momentum, with US retail sales rising just 0.2% in September after a stronger gain in August, signalling softer household spending, a PTI report said, quoting Jigar Trivedi, Senior Research Analyst at Reliance Securities.

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.

Later Wednesday, the US government is set to release more data, including the jobless claims report.

Investors will also track the US GDP and Core Personal Consumption Expenditures (PCE) inflation index data, which is set for release this week.

On the geopolitical front, Ukraine has agreed to a plan to end the more than three-year-long war.