Gold Slips Ahead Of US Inflation Data, Silver Also Declines On MCX

Mumbai: Gold prices dropped on Friday, October 24, as traders turned cautious ahead of an important US inflation report expected later in the day. On the Multi Commodity Exchange (MCX), gold December futures were down 0.44 percent at Rs 1,23,552 per 10 grams around 9:06 a.m. Silver December futures also slipped 0.98 percent to Rs 1,47,052 per kg at the same time.

Pressure After Record Highs

The yellow metal has seen heavy selling this week after repeatedly touching record highs in recent sessions. Prices have dropped more than 5 percent early in the week, marking gold’s biggest intraday fall in five years. Despite this drop, gold is still up over 50 percent so far this year, supported by safe-haven demand and continuing trade tensions.

Investors are now focused on upcoming trade talks between US President Donald Trump and China’s President Xi Jinping, which could influence global market sentiment.

Global Gold Also Declines

In the international market, spot gold slipped 0.2 percent to USD 4,118.68 per ounce as of 3:15 a.m. GMT. For the week, bullion has fallen nearly 3 percent, which could be its largest weekly loss since mid-May.

The dollar index strengthened for the third straight session, making gold more expensive for investors holding other currencies. A stronger dollar often leads to weaker gold prices, as it reduces demand from overseas buyers.

Focus on US Inflation and Fed Decision

All eyes are now on the US Consumer Price Index (CPI) report, which is expected to show that core inflation stayed at 3.1 percent in September. The report was delayed due to a recent US government shutdown.

Market participants are also watching the Federal Reserve’s upcoming meeting next week, where a 25-basis-point rate cut is almost fully priced in. Lower interest rates usually support gold prices, as they reduce the opportunity cost of holding non-interest-bearing assets like bullion.