MCX gold futures rose 1.04% to ₹1.54 lakh per 10 grams last week, while silver climbed nearly 3% to ₹2.41 lakh per kilogram. Prices are currently trading in a range as investors wait for fresh US economic data and central bank updates. The trend suggests cautious optimism, with steady inflows into gold ETFs despite ongoing price consolidation.
MCX gold futures for October delivery closed the week higher at ₹1.54 lakh per 10 grams, marking a 1.04% increase. Silver showed more strength, finishing at ₹2.41 lakh per kilogram, a rise of almost 3%. These moves followed a period where prices dipped earlier in the week before recovering due to sustained buying interest at lower levels.
Globally, gold futures for December on the Comex exchange held steady near $4,424.9 per ounce. The market has been moving sideways for three weeks, showing that while investors are still willing to buy during price dips, there is currently no clear trend pushing gold significantly higher or lower.
For Indian investors, global economic factors remain the primary drivers of price. The US dollar and government bond yields are especially important. When bond yields rise, gold—which does not pay interest—becomes less attractive compared to other assets. Conversely, a weaker dollar typically supports gold prices. The recent Federal Reserve rate hike of 25 basis points has also influenced market expectations regarding inflation and safe-haven investments.
A key positive observation is the continued inflow into gold exchange-traded funds (ETFs) over the past two months. This suggests that while traders in the futures market are hesitant, long-term investors are still building their holdings. However, volatility remains a risk. If upcoming economic data from the US, such as housing or manufacturing reports, shows unexpected strength, it could push bond yields higher and put pressure on gold prices.
The market is now looking ahead to new economic data, including Purchasing Managers' Index (PMI) readings from major global economies, which track the health of the manufacturing and services sectors. Investors will also monitor the People's Bank of China’s policy decision this week. These factors will likely determine whether gold can break out of its current range or continue to trade sideways in the immediate future.