Gold and silver prices returned to a rally on Diwali day after a break over the Dhanteras weekend, according to data from the Multi Commodity Index.
MCX Gold price rose as much as 0.97% to ₹1,28,556 for 10 gm even as the MCX Silver price increased 2.8% to ₹1,59,875 per kg, according to data on the MCX website. The bullion had traded lower over the weekend.
Globally, gold prices edged higher, helped by chances of more US Fed rate cuts while investors awaited US inflation data and US-China trade talks this week.
Spot gold was up 0.1% at $4,253.33 per ounce. US gold futures for December delivery climbed 1.3% to $4,266.30 per ounce. Spot silver rose 0.5% to $52.12 per ounce. Prices fell about 4.4% on Friday in their worst session since early April, after hitting a record high of $54.47 earlier in the day. Platinum fell 0.8% to $1,596.88 per ounce and palladium gained 0.2% to $1,476.97.
“The gold market is trying to find its footing after Friday’s selloff,” Kyle Rodda, an analyst with Capital.com, told Reuters. “Sentiment is normalising, cooling down a bit, after a few weeks of mania.”
Gold, Silver Price Trends
Gold fell about 1.8% on Friday, the most since mid-May, after US President Donald Trump said his proposed 100% tariff on goods from China would not be sustainable. He said he would meet with Chinese President Xi Jinping and that he thought things would be fine with China.
“The next big hurdle will be US-China trade talks this week and US inflation data on Friday, something that I think has allowed for this surge in gold prices is the vacuum created by an absence of economic data,” Rodda said.
The US inflation is seen at 3.1%, but that should not trouble the markets since the US Federal Reserve has not pushed back against pricing for rate cuts.
Markets are fully pricing in for a quarter-point Fed rate cut this month, and another one in December, according to the CME FedWatch Tool.