Mumbai, Dec 12 : Gold prices inched higher on Friday morning, while silver slipped after traders booked profits following record highs on the MCX. February gold futures were trading 0.10% up at Rs 1,32,599 per 10 grams, as analysts noted a firm support at Rs 1,31,400 and projected the next resistance near Rs 1,34,000.
In contrast, March silver futures fell 0.50% to Rs 1,97,951 per kg after touching an all-time high of Rs 1,98,814 in the previous session. Gold futures had closed 2% higher at Rs 1,32,469 per 10 grams.
The rally in precious metals followed the US Federal Reserve’s 25-basis-point rate cut and hints of further easing next year. A weakening dollar index at 98.30 and the Indian rupee’s record low against the US dollar added support to domestic gold demand.
Market experts noted that lower interest rates reduce the opportunity cost of holding non-yielding assets like gold and silver, attracting fresh investment flows. “With bullion already at record highs, the Fed’s rate cut adds momentum to the rally as investors seek safe-haven assets amid economic uncertainty,” analysts said.
Investors now await key US data, including inflation numbers and non-farm payrolls, which will influence expectations around the Fed’s next policy moves.