Gold Futures Climb ₹527 to ₹1.21 lakh/10 g Amid Firm Global Cues

Gold prices climbed Rs 527 to Rs 1,21,020 per 10 grams in the domestic futures trade on Friday as speculators created fresh positions following a firm trend in the international markets.

On the Multi Commodity Exchange (MCX), the yellow metal futures for December delivery appreciated by Rs 527, or 0.44 per cent, to Rs 1,21,020 per 10 grams.

Gold futures retreated from record highs to settle at Rs 1,20,493 per 10 grams on Thursday after touching an all-time high of Rs 1,23,677 per 10 grams in the session.

Silver futures also gained momentum on the MCX, with the December contract surging by Rs 2,225, or 1.52 per cent, to Rs 1,48,549 per kilogram. The white metal had soared to a record high of Rs 1,53,388 per kg on Thursday.

Traders said the rise in gold prices was mainly due to participants widening their bets amid firm global trends, as the yellow metal gained on safe-haven demand and expectations of interest rate cuts by the US Federal Reserve.

In the overseas market, Comex gold futures for December delivery rose by USD 26.50, or 0.67 per cent, to USD 3,999.10 per ounce. On Wednesday, the precious metal hit a record of USD 4,081 per ounce.

"Gold rose to around USD 3,990 per ounce on Friday, heading for its eighth consecutive weekly gain after notching a record high earlier in the week, supported by economic uncertainties and expectations of US rate cuts," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Meanwhile, New York Federal Reserve President John Williams said he was open to another rate cut, though persistent inflation could complicate the decision.

His comments came after minutes from the latest Federal Open Market Committee (FOMC) meeting indicated policymakers saw growing risks to the labour market, but remained cautious about inflationary pressures.

"The US government shutdown, now in its second week, has delayed key economic data releases and continued to fuel market uncertainty," Trivedi added.

Comex silver futures were trading 2.14 per cent higher at USD 48.16 per ounce after touching a high of USD 49.96 per ounce on Thursday.