Gold and silver futures on the Multi Commodity Exchange of India (MCX) rebounded on Friday, October 16, following a sharp sell-off in the previous session. The recovery was driven by a weaker US dollar and lower Treasury yields, which supported bullion prices. MCX gold futures for December 4 delivery climbed 0.63% to ₹1.48 lakh per 10 grams, while silver futures rose 1.30% to ₹2.13 lakh per kilogram. Internationally, gold gained 0.06% to $1,973.39 per ounce, and silver increased 0.46% to $27.68, according to Gaurav Garg, Head of Research at Lemonn.
The recovery in precious metals was attributed to lower US Treasury yields and a softer dollar, as investors evaluated the outlook for US interest rates. Federal Reserve Chair Kevin Warsh's recent comments did not signal an immediate rate hike, though inflation data and policy guidance remain key factors. For domestic prices, the rupee-dollar exchange rate also plays a crucial role, with a weaker rupee potentially cushioning the impact of falling international gold prices.
Vikram Subburaj, CEO of Giottus.com, noted that gold needs to sustain above ₹1.48 lakh per 10 grams to strengthen its recovery. For silver, holding above ₹2.08 lakh per kilogram and moving beyond ₹2.11 lakh would support further momentum. However, the rebound alone does not confirm a trend reversal, and prices could remain volatile amid changing global cues.
Separately, some fund houses have restricted fresh subscriptions to gold exchange-traded funds (ETFs). Nirpendra Yadav, Senior Research Analyst at Bonanza, explained that these curbs do not necessarily indicate weaker investor sentiment, as existing holdings continue to track domestic gold prices. The restrictions appear aimed at moderating investment-driven gold demand amid concerns over gold imports and pressure on the rupee.