Gold, silver prices rise in India today: Check latest rates
What's the story
Gold and silver prices have risen in the domestic futures market on Monday morning. The increase comes amid a weaker US dollar and strong spot demand. As of today morning, MCX Gold December futures were trading 0.39% higher at ₹1,21,708 per 10gm while MCX Silver December contracts were up by 0.69% at ₹1,49,307 per kg.
Market analysis
Fed's rate cuts may not happen in December
Gold and silver are witnessing some short covering after their recent correction. The expectation of further US Federal Reserve rate cuts has weakened following Chair Jerome Powell's hawkish remarks last week. On October 29, the Fed had cut interest rates by 25 basis points for the second time this year, lowering the benchmark overnight rate to a target range of 3.75% to 4.00%. However, Powell hinted there may be no rate cuts in December.
Currency impact
MCX Gold is currently down nearly 8% from record high
Gold prices have witnessed profit booking in recent days due to fading expectations of further US rate cuts and easing trade tensions after a US-China deal. In the last two weeks, domestic spot gold prices have fallen by nearly ₹9,400 or over 7% per 10gm. MCX Gold is currently down nearly 8% from its record high. Silver has also seen massive selling with its prices falling by nearly ₹22,000 or 13% per kg during the same period.