Market Performance
On Thursday morning, gold and silver prices moved higher in the domestic futures market, reflecting a softer dollar and improved investor sentiment. The rise came after the US government temporarily ended its 43-day shutdown, the longest in its history, which had left many sectors of the economy in limbo.
Around 9:35 am, the MCX gold December futures were up 0.37% at ₹1,26,935 per 10 grams, while MCX silver December contracts climbed 1.70% to ₹1,64,854 per kg.
The upward momentum in precious metals coincided with a decline in the US dollar index, which hovered near 99.5, as traders began factoring in potential shifts in the Federal Reserve’s monetary policy.
Main News
The US political developments played a key role in driving market sentiment. US President Donald Trump approved a temporary funding bill on Wednesday night, bringing an end to the prolonged government shutdown that started on October 1. The closure had disrupted federal services, impacted airport operations, and put pressure on food banks nationwide.
With government functions back on track, investors are now focusing on the upcoming US economic data, including employment and inflation numbers key indicators that could influence the Federal Reserve’s rate decision in December.
Economists have noted that the US Labor Department is prioritizing the release of fresh employment and inflation data to help policymakers make informed decisions at the next Fed policy meeting.
Global Market Sentiment
The easing of the US shutdown has brought a sense of relief across global markets. However, the expectation of a possible Fed rate cut continues to support the bullish undertone in precious metals.
As trading resumed, investors maintained cautious optimism, with the dollar’s weakness offering short-term support to both gold and silver. Despite the reopening of US government offices, the focus has now shifted to how upcoming economic indicators could steer the Fed’s decision-making in the next few weeks.
Commodity Snapshot
- MCX Gold (December): ₹1,26,935 per 10 grams, up 0.37%
- MCX Silver (December): ₹1,64,854 per kg, up 1.70%
- US Dollar Index: Near 99.5
- Duration of US Shutdown: 43 days
The strength in gold and silver is also linked to renewed safe-haven demand. With the dollar softening, metals have found a firmer footing, attracting traders back into the market.
Company Details (Macro Impact)
While this shift is not tied to corporate developments, the broader commodities market is reacting to global macroeconomic shifts particularly the interplay between the dollar’s movement and interest rate expectations. A softer dollar typically lifts gold and silver prices, making them more affordable for investors using other currencies.
This pattern has held true over the past few sessions, as the US shutdown news and Fed policy expectations created a window for short-term price gains across precious metals.
Summary
The gold and silver market today paints a picture of cautious optimism. Prices have risen in the domestic market amid a weaker dollar and renewed hopes of policy easing in the US.
Key Takeaways:
- MCX gold up 0.37% at ₹1,26,935 per 10 grams
- MCX silver up 1.70% at ₹1,64,854 per kg
- Dollar index trades near 99.5
- US ends 43-day shutdown; economic data awaited
- Market sentiment remains bullish on precious metals amid Fed rate-cut expectations.
As global markets adjust to the latest policy developments, gold and silver continue to reflect the mood of uncertainty and opportunity a balance investors will be watching closely in the days ahead.
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