Gold, silver prices fall on MCX ahead of key US inflation data

Gold and silver prices slipped on the MCX on Thursday as investors booked profits ahead of key US inflation data. Markets are closely watching CPI and PCE figures for cues on the US Federal Reserve’s interest rate outlook.

Mumbai: Gold and silver prices slipped in the domestic futures market on Thursday morning as investors booked profits after the recent rally to record highs.

A slight rise in the US dollar and caution ahead of key US inflation data also weighed on precious metal prices.

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During early trade, MCX gold February contracts were trading 0.20 per cent lower at Rs 1,34,619 per 10 grams.

MCX silver March contracts declined 0.47 per cent to Rs 2,06,451 per kg.

The fall came after a strong performance in the previous session, when gold and silver ended at elevated levels.

On Wednesday, gold February futures on the MCX settled 0.36 per cent higher at Rs 1,34,894 per 10 grams.

Silver prices surged sharply, touching a record high of Rs 2,07,833 per kg during the session and closing 4.9 per cent higher at Rs 2,07,435 per kg.

Market participants are now closely watching the US Consumer Price Index data for November, scheduled to be released later on Thursday.

Investors are also awaiting the Personal Consumption Expenditures inflation data due on Friday.

These inflation numbers are expected to play a key role in shaping expectations around the future interest rate path of the US Federal Reserve.

Analysts believe that gold prices could see further upside if the inflation data comes in below market expectations, as softer inflation would strengthen hopes of interest rate cuts.

Recent job market data has already added to such expectations, with the US unemployment rate rising to 4.6 per cent in November, the highest level seen since September 2021.

This has increased speculation that the US Fed may cut interest rates by 25 basis points in January.

Apart from US data, investors are also keeping an eye on the Bank of Japan’s policy decision due on Friday.

The central bank is widely expected to raise its benchmark interest rate to the highest level in nearly three decades, a move that could trigger volatility across global financial markets and impact precious metal prices.