Gold, Silver Futures Lose Momentum On Weak Global Cues, Fading Rate Cut Hopes

Gold and silver retreated in the domestic futures trade on Friday tracking a subdued demand in global markets and reduced expectations of a near-term rate cut by the US Federal Reserve. On the Multi Commodity Exchange (MCX), gold futures for December delivery declined Rs 345, or 0.27%, to Rs 1,26,406 per 10 grams.

Similarly, the February 2026 contract decreased by Rs 434, or 0.34%, to Rs 1,27,973 per 10 grams. Silver futures turned negative after a five-day rally, with the December contract plunging Rs 1,190, or 0.73% to Rs 1,61,280 per kilogram. The March 2026 contract also tumbled by Rs 1,164, or 0.7% to Rs 1,64,200 per kg.

In the international markets, Comex gold futures for December delivery was trading flat at $4,195 per ounce.

'Gold prices rose above $4,190 per ounce on Friday, heading for their best week in a month, driven by a softer dollar and uncertainty over a backlog of official data following the US government's reopening,' Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06% higher at 99.21. White House's National Economic Council Director Kevin Hassett noted that certain October figures may 'simply never show up,' as some agencies were unable to collect data during the shutdown.

While some of these releases could appear soon, others may be lost entirely, fuelling renewed caution about the country's economic outlook, Trivedi said. Comex silver futures for December delivery slipped 0.94% to $52.67 an ounce in the overseas trade.

'The US government has reopened, and as a result of all these concerns about inflation and the slowdown, there was some decline in silver prices as expectations changed to suggest that the Fed might not be ready to cut rates aggressively,' Renisha Chainani, Head - Research at Augmont, said.

She said the probability of a 25 basis point rate cut in December by the Fed has dropped to 50% from over 95% a month earlier, while expectations for 2026 has not changed.