EconomyCommodities
Gold holds near ₹1.48 lakh and silver gains as a weaker dollar helps metals
Precious metals extended Thursday's rebound ahead of the festive weekend, while Brent crude eased to about $105.6 a barrel but stayed far above last year's levels.
Key points
- MCX gold for December delivery traded at about ₹1,48,429 per 10 grams late on Friday.
- Silver futures rose 1.33% to ₹2,13,460 a kg.
- Brent crude slipped 0.34% to $105.56 a barrel in the evening.
Gold held close to ₹1.48 lakh per 10 grams on Friday and silver rose more than 1%, as a weaker US dollar and lower bond yields drew buyers back to precious metals ahead of the festive weekend.
On the Multi Commodity Exchange, gold for December delivery was quoted at ₹1,48,429 late in the session, building on Thursday’s jump of ₹2,041 to ₹1,47,889. Silver futures for December rose 1.33% to ₹2,13,460 a kg.
In Delhi’s jewellery market, 24-carat gold was selling at about ₹14,759 a gram on Friday morning, or about ₹1,47,590 for 10 grams, and 22-carat at ₹13,530 a gram.
Why metals rose
Traders put the rebound down to a softer dollar and easing pressure from crude oil prices, with lower US Treasury yields also helping. The dollar index fell 0.41% to 101.445 on Friday. Gold is priced in dollars, so a weaker dollar makes it cheaper for buyers using other currencies.
Even with the two-day recovery, gold remains about ₹3,000 below where it stood a week ago. It had fallen nearly 4% over three sessions from ₹1,51,499 on 9 October, as traders waited for US inflation data.
Oil eases but stays high
Brent crude was down 0.34% at $105.56 a barrel in the evening, and US crude was trading near $97. On the MCX, the October crude contract fell 0.56% to ₹9,233 a barrel.
Prices remain far above last year’s, with Brent about 72% higher than a year ago. That keeps pressure on India’s import bill and the rupee, since the country buys most of the oil it uses from abroad.