Gold and silver prices climbed in international markets on Monday, October 12, as investors braced for key US economic data and signals from the Federal Reserve. On COMEX, gold futures rose to $4,229.80 per ounce, up 0.32% from the previous close, while silver futures gained 0.72% to $61.485 per ounce.
The upcoming US consumer price index (CPI), producer price data, and retail sales figures will provide insights into inflation and economic health. Rising energy costs could fuel inflation, influencing the Federal Reserve’s interest rate decisions. Gold, which lacks interest income, often faces pressure when rates rise, but a weaker dollar and lower bond yields could boost demand.
Last week, gold futures for December delivery on COMEX gained 1.3% to close at $4,216.30 per ounce, while silver rose over 1% to $61.05 per ounce. The recovery was supported by a softer US dollar and a pullback in Treasury yields. Silver also benefited from gains in industrial metals like copper and zinc. However, tighter monetary policy expectations may cap further gains, as markets weigh whether persistent inflation will prompt a Fed rate hike in October or December.
In India, the rupee’s movement will be crucial for domestic bullion prices. A weaker rupee increases the cost of imported gold and silver, potentially offsetting global price declines. Jateen Trivedi, vice-president and research analyst at LKP Securities, expects gold and silver prices to remain range-bound with a mildly positive bias, supported by rupee weakness. Investors will monitor inflation data from India, China, and the US, along with trade data from China and Fed speeches for further cues.
On the Multi Commodity Exchange (MCX), gold futures for December delivery gained nearly 1% last week to settle at around ₹1.51 lakh per 10 grams, while silver futures ended marginally lower by ₹122 at around ₹2.25 lakh per kilogram. The US inflation readings and Fed policy signals will be key triggers for international bullion prices, with the rupee’s movement influencing domestic rates.