Gold Futures Fall, Silver Gains As Weak US Data Spurs Caution

Gold prices fell to Rs 1,30,374 per 10 grams while silver futures rose to Rs 1,82,672 per kilogram on Wednesday as mixed global trends and weak US economic data prompted cautious trading among investors.

On the Multi Commodity Exchange, gold futures for December delivery fell by Rs 88, or 0.07 per cent, to Rs 1,30,374 per 10 grams in a business turnover of 13,122 lots.

However, silver futures for the March 2026 contract climbed by Rs 320, or 0.18 per cent, to Rs 1,82,672 per kilogram in 13,820 lots.

'Gold traded with sharp intraday volatility, rebounding from the day’s lows but failing to sustain gains,' Rahul Kalantri, Vice-President of Commodities, Mehta Equities Ltd, said.

In the international market, Comex gold futures for February delivery slipped by 0.15 per cent to USD 4,225.95 per ounce while silver for March contract rose 0.25 per cent to USD USD 58.76 per ounce. The white metal had scaled a lifetime high of USD 59.65 per ounce on Wednesday.

'Precious metals inched toward fresh highs on Wednesday as market participants reacted to key US economic data and rising geopolitical tensions,' Kalantri said.

He added that the ADP non-farm employment change report released on Wednesday came in well below expectations, with a significant miss that has fuelled speculation about the Federal Reserve's next steps.

'The weak data pushed the dollar index below the 99 mark, giving additional momentum to precious metals. As economic uncertainty deepens investors continue to lean on gold's safe-haven strength,' Kalantri added.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, said, investors are now awaiting the September Personal Consumption Expenditures (PCE) inflation data on Friday for fresh insights into the Fed's monetary policy outlook.

"Adding some support was a geopolitical risk premium, as US and Russia concluded talks on the Ukraine war without any breakthroughs," Trivedi noted.

Analysts said bullion prices remain supported by the weaker US dollar and risk aversion, volatility could continue as market participants track upcoming data and speeches from central bank officials for further direction.