New Delhi: Gold on the Multi-Commodity Exchange of India opened slightly lower on Thursday, tracking global prices as investors awaited US economic data for guidance on the Federal Reserve policy.MCX gold rate for December expiry declined Rs 122, or 0.11 per cent, at Rs 1,13,525 per 10 grams, down from Wednesday’s close of Rs 1,13,647.
The MCX silver opened lower by approximately Rs 1,000 per kg but rebounded quickly by 0.31 per cent to Rs 1,34,415 per kg as of 9.15 A.M.The price of 24-carat gold (1 gram) was at Rs 11,358 at 10.10 A.M., according to data published by the India Bullion and Jewellers Association (IBJA).Spot gold in international markets remained near $3,734 an ounce, while US gold futures for December traded around $3,765, as the dollar index fell approximately 0.1 per cent.
Meanwhile, analysts say that bullion continues to receive support from robust central bank purchases and sustained inflows into ETFs and that the MCX October gold futures may decline to Rs 1,12,000 if global trends weaken.The Fed Chair’s cautious remarks on inflation, labour market and future rate cuts could act as a cap on bullion’s gains.
"The PBoC is leveraging the Shanghai Gold Exchange to encourage central banks from friendly nations to purchase and store bullion within its borders. On data front, US housing numbers were reported better than expectations, weighing on prices," said Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd.
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Traders are waiting for cues from US economic data to gain further insights into Federal Reserve policy, such as US GDP, Inflation, and durable goods orders data, he added.Additionally, geopolitical tensions boosted demand for the safe-haven metal, as NATO warned Russia it would use “all necessary military and non-military measures” to defend itself, while US President Donald Trump said Ukraine could reclaim all territory held by Russia.
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