New Delhi, Nov 14 Gold prices saw a significant drop on Friday, mirroring the softer trend in global markets as traders reacted to fading expectations of a near-term US Federal Reserve rate cut.
Gold futures contracts on the Multi-Commodity Exchange (MCX) opened firmly in red and stayed under pressure throughout the session. The December futures contract of gold dropped by Rs 1,186, or 0.94 per cent, settling at Rs 1,25,573 per 10 grams.
MCX Silver December contracts dipped 1.09 per cent or Rs 1,690 to Rs 1,60,780 per kg.
At mid-day, the price of 10 grams of 24-carat gold was at Rs 1,25,478, down from Rs 1,26,554 on Thursday, according to data published by the India Bullion and Jewellers Association (IBJA).
Market expectations for a December rate cut fell sharply, with traders now pricing in around a 50 per cent probability of a 25-basis-point cut, while projections for 2026 remain unchanged.
Safe-haven buying dipped as the US government reopened after a record 43-day shutdown that had disrupted key economic data flows.
Earlier during the week, gold rose significantly amidst dollar decline, increased safe-haven buying and fresh demand ahead of the peak wedding season.
Analysts had said that precious metals were on track for their strongest weekly performance in a month, also due to uncertainty stemming from missing U.S. economic data, which lifted safe-haven demand.
However, the upside remained capped as Federal Reserve officials indicated no immediate need for further easing, they added. Strong physical demand from China and Australia provided support to precious metals through the month.
According to Rahul Kalantri, VP Commodities, Mehta Equities Ltd, gold has support at Rs 1,25,750-1,24,980 zones, while resistance is at Rs 1,27,750-1,28,400. Silver has support at Rs 1,60,950-1,59,400 while resistance is at Rs 1,63,850-1,64,900, he added.
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