CHENNAI: Gold prices on the Multi Commodity Exchange (MCX) traded lower in the noon session on Friday (October 31), tracking weakness in international bullion markets as the US dollar strengthened.
At midday, gold futures for December delivery fell around 0.25% to Rs 1,21,200 per 10 grams, extending early losses from the morning session. The decline mirrored global trends, where spot gold prices slipped as a firm dollar and higher US bond yields reduced investor appetite for the metal.
Silver futures also declined over half a percent on the MCX, weighed down by muted industrial demand and weak overseas prices.
Commodity analysts wrote in their reports that the fall in precious metals followed the Federal Reserve’s cautious outlook on rate cuts, which pushed the dollar higher and made gold less attractive for investors holding other currencies. The recent rally in the dollar index has further pressured bullion prices globally.
Traders expect gold to remain under pressure in the near term, with key support levels seen around Rs 1,20,800 per 10 grams. However, seasonal demand from jewellers ahead of the festive season could provide some cushion.
Overall, the mid-session trend showed gold and silver futures extending their decline on Friday, reflecting a global risk-off sentiment and profit-booking in the bullion segment after recent gains.
