Is MCX Gold Facing a Slight Decline While Silver Shows Resilience?
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Synopsis
In a fluctuating market, MCX Gold sees a slight dip while Silver makes a notable comeback. Investors are closely monitoring US economic data that could influence Federal Reserve policies. With geopolitical tensions rising, what does this mean for bullion investors?
Key Takeaways
- MCX Gold opens slightly lower amid global trends.
- MCX Silver rebounds by 0.31% after initial decline.
- Investor focus is on upcoming US economic data.
- Geopolitical tensions are influencing safe-haven demand.
- Potential for October gold futures to decline if global conditions weaken.
New Delhi, Sep 25 (NationPress) On Thursday, gold trading on the Multi-Commodity Exchange of India commenced with a minor decline, following global market trends as investors sought insights from upcoming US economic data regarding Federal Reserve policies.
The MCX gold rate for December delivery fell by Rs 122, or 0.11 percent, settling at Rs 1,13,525 per 10 grams, a decrease from Wednesday’s closing price of Rs 1,13,647.
In contrast, MCX silver began the day with a dip of around Rs 1,000 per kg but showed a quick rebound, rising 0.31 percent to Rs 1,34,415 per kg as of 9:15 AM.
The price for 24-carat gold (1 gram) was recorded at Rs 11,358 at 10:10 AM, according to data from the India Bullion and Jewellers Association (IBJA).
Internationally, spot gold prices hovered around $3,734 an ounce, while US gold futures for December traded near $3,765, with the dollar index dipping by approximately 0.1 percent.
Analysts indicate that bullion remains buoyed by strong central bank purchases and consistent inflows into ETFs, suggesting that MCX October gold futures could fall to Rs 1,12,000 if global conditions deteriorate.
Comments from the Fed Chair regarding inflation, the labor market, and potential rate cuts may limit the upward momentum of bullion prices.
“The PBoC is utilizing the Shanghai Gold Exchange to encourage central banks from allied nations to buy and store bullion in its territory. On the data front, better-than-expected US housing numbers have impacted prices,” stated Manav Modi, Analyst – Precious Metal -Research, Motilal Oswal Financial Services Ltd.
Traders are keenly awaiting US economic data for further guidance on Federal Reserve policy, including key metrics like US GDP, inflation, and durable goods orders.
Moreover, escalating geopolitical tensions have heightened demand for this safe-haven asset, with NATO cautioning Russia of “all necessary military and non-military measures” for self-defense, while US President Donald Trump mentioned that Ukraine has the potential to reclaim all territories occupied by Russia.
Point of View
It is crucial to present an unbiased perspective on the market fluctuations of gold and silver. The current trends highlight the complex interplay of global economic indicators and geopolitical tensions, shaping investor sentiment and trading strategies. Our commitment is to keep our audience informed with accurate data and expert analysis.
NationPress
25/09/2025
Frequently Asked Questions
What caused the decline in MCX Gold prices?
The decline in MCX Gold prices can be attributed to global market trends and the anticipation of US economic data that may affect Federal Reserve policies.
Why did MCX Silver rebound after opening lower?
MCX Silver rebounded due to strong demand and market corrections, recovering by 0.31 percent shortly after opening.
What factors influence gold prices worldwide?
Gold prices are influenced by economic indicators, geopolitical tensions, central bank policies, and market demand.
How do external factors impact bullion investments?
External factors such as inflation, interest rates, and geopolitical events significantly impact investor sentiment and the demand for bullion.
What are analysts predicting for MCX October gold futures?
Analysts suggest that if global trends weaken, MCX October gold futures could potentially decline to Rs 1,12,000.
