Mumbai (IANS) Gold prices inched up, while the Rupee and silver slipped on Friday morning. Traders booked profits after gold hit a fresh record high on the MCX. The rupee fell to a new record low in early trade on Friday, slipping 24 paise to 90.56 against the US dollar.
During early trade, MCX gold futures for February were trading 0.10 per cent higher at Rs 1,32,599 per 10 grams. “MCX Gold has broken out to lifetime highs, trading near Rs 1,32,776 inside a tightening ascending wedge with firm support at Rs 1,31,400,” analysts stated. “The next resistance zone opens the momentum leg toward Rs 1,34,000 and above.”
In contrast, MCX silver futures for March were down 0.50 per cent at Rs 1,97,951 per kg. In the previous session, silver had touched an all-time high of Rs 1,98,814 per kg and ended the day with a strong 5.33 per cent gain at Rs 1,98,799.
Gold February futures also saw healthy buying, closing at Rs 1,32,469 per 10 grams after rising 2 per cent. Both metals rallied after the US Federal Reserve cut its benchmark interest rate by 25 basis points and hinted at the possibility of another rate cut next year.
The dollar index also slipped to 98.30 – making gold cheaper for global buyers and boosting demand. At the same time, the Indian rupee continued to remain at its record low against the US dollar. The weaker currency is supporting gold prices in the domestic market.
Investors are now waiting for key US data, including inflation numbers and the non-farm payrolls report due next week. These indicators will help shape expectations around the Fed’s next policy moves.
“The US Federal Reserve’s decision to cut key interest rates by 25 bps to 3.50 per cent-3.75 per cent amid persistent inflation has reinforced bullish sentiment in precious metals,” market watchers stated. Lower rates reduce the opportunity cost of holding non-yielding assets like gold and silver, attracting fresh investment flows.
“With bullion already at a record high, this policy shift adds momentum to the rally, as investors seek safe-haven assets amid economic uncertainty and inflationary pressures,” analysts mentioned.
The Rupee came under pressure as uncertainty around the India-US trade deal and continued foreign fund outflows hurt market sentiment. According to forex traders, the Rupee is weakening mainly because importers are aggressively buying dollars amid rising global prices of precious metals. The strong demand for the US currency is adding to the pressure on the Rupee.
At the interbank foreign exchange market, the Rupee opened at 90.43 against the dollar and soon dropped to 90.56. This marked a 24-paise decline from Thursday’s closing level. A day earlier, the rupee had already tumbled 38 paise to end at a then-record low of 90.32.
However, looking ahead, experts expect that the Indian Rupee is likely to strengthen. “We expect the INR to remain below 90 per dollar for the rest of 2025 and gain strength through 2026 to reach around 86 per dollar by the end of next year,” they added.
While a weaker Rupee can support export-oriented sectors such as IT, pharma, textiles, among others – especially at a time when parts of India’s export basket have come under pressure from steep US tariffs – it simultaneously raises concerns around imported inflation,” experts stated.
Despite this, today’s equity strength indicates that the market is temporarily decoupling from currency pressure and prioritizing technical resilience, they added.
The dollar index, which measures the US dollar’s strength against six major currencies, inched up 0.02 per cent to 98.37. Brent crude prices were also trading higher at USD 61.69 per barrel, up 0.67 per cent in futures trade. Despite the weakness in the Rupee, domestic equity markets were trading in the green. The Sensex rose 170.40 points to 84,988.53, while the Nifty gained 98.40 points to reach 25,996.95. Foreign Institutional Investors continued to pull out funds, selling equities worth Rs 2,020.94 crore on Thursday, according to exchange data.
