Gold edges higher amid Fed cut expectations, festive demand; silver also gains ground
MCX Gold October futures were up 0.24 per cent at Rs 1,06,670 per 10 grams, while MCX Silver December futures gained 0.47 per cent to Rs 1,24,500 per kg. In the global market, spot gold advanced 0.3 per cent to $3,556.21 an ounce at 0332 GMT, hovering close to Wednesday’s record peak of $3,578.50.
- Sep 5, 2025,
- Updated Sep 5, 2025 1:14 PM IST
Gold prices climbed in the domestic futures market on Friday (September 5), supported by healthy spot demand, a weaker US dollar, and expectations of a US Federal Reserve rate cut later this month.
At 9:05 am, MCX Gold October futures were up 0.24 per cent at Rs 1,06,670 per 10 grams, while MCX Silver December futures gained 0.47 per cent to Rs 1,24,500 per kg. In the global market, spot gold advanced 0.3 per cent to $3,556.21 an ounce at 0332 GMT, hovering close to Wednesday’s record peak of $3,578.50. US gold futures for December delivery edged higher to $3,615 an ounce, bringing weekly gains to 3.2 per cent. In India, retail prices stood at Rs 10,685 per gram for 24 karat gold, Rs 9,794 for 22 karat, and Rs 8,013 for 18 karat, according to Goodreturns.
The dollar index slipped 0.30 per cent, making bullion more attractive for overseas buyers. Traders are now almost certain of a 25-basis-point rate cut by the Federal Reserve on September 17, after recent US economic data pointed to labor market softness. The ADP National Employment Report showed private payrolls rose less than expected in August, while weekly jobless claims came in higher than forecasts.
“A drop in job openings, higher-than-expected layoffs, and initial jobless claims reaching a two-month high have led markets to largely price in a September rate cut,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities. He added that geopolitical tensions and concerns about the Fed’s independence under President Trump are further boosting safe-haven demand.
Investors are now awaiting US non-farm payrolls data, due later in the day, for stronger cues on the Fed’s policy stance.
Darshan Desai, CEO of Aspect Bullion & Refinery, said gold remains resilient despite being technically overbought. “Concerns over Fed independence, a weaker dollar, and tariff-related uncertainty continue to support the market,” he noted.
Rahul Kalantri, VP Commodities at Mehta Equities, said some investors booked profits ahead of the payroll report, pegging support for gold at $3,500–3,530 per ounce and resistance at $3,570–3,590.
Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, underlined that market sentiment remains firmly risk-averse. “The mode is clearly safety and wealth preservation, with geopolitical uncertainty and the prospect of softer US interest rates continuing to underwrite gold’s allure,” she said.
She further pointed out that domestic futures had tested the ₹1,05,000–₹1,06,200 band this week. “MCX Gold futures revealed significant investor demand interest as a hedge in an uncertain global backdrop,” Kamboj observed. She also highlighted the regulatory reprieve from the GST Council’s recent reforms. “The consolidation of GST into just two rates—5% and 18%—with gold retaining a 3% levy has reduced compliance pressure on jewellers, particularly ahead of the festive season. This has provided a supportive backdrop for trade, even as intraday moves allowed for some profit-taking.”
Technical analysts maintain a bullish outlook. According to Trivedi, MCX Gold October futures could appreciate to ₹1,07,000 per 10 grams, with ₹1,06,000 acting as strong support. Manoj Kumar Jain of Prithvifinmart Commodity Research pegged support for gold at $3,555–3,584 and resistance at $3,634–3,660 per ounce, while silver has support at $41.10–40.80 and resistance at $41.84–42.10.
In the domestic market, MCX Gold is expected to find support at ₹1,05,850–1,05,400 and resistance at ₹1,07,000–1,07,720. Silver’s support lies at ₹1,23,000–1,22,200, with resistance at ₹1,25,000–1,26,300.
Analysts advise a buy-on-dips strategy. Gold can be accumulated around ₹1,05,800 with a stop loss at ₹1,05,380, targeting ₹1,07,000. Experts noted that the metal’s continued strength as a preferred hedge in a climate of economic and geopolitical uncertainty.
For silver, Kamboj noted that silver continues to shine in India’s precious metals market, buoyed by a mix of industrial demand and safe-haven buying. Despite sweeping changes by the GST Council, the levy on silver remains steady at 3 per cent, with an additional 5 per cent on making charges, offering much-needed clarity for traders amid regulatory shifts.
Gold prices climbed in the domestic futures market on Friday (September 5), supported by healthy spot demand, a weaker US dollar, and expectations of a US Federal Reserve rate cut later this month.
At 9:05 am, MCX Gold October futures were up 0.24 per cent at Rs 1,06,670 per 10 grams, while MCX Silver December futures gained 0.47 per cent to Rs 1,24,500 per kg. In the global market, spot gold advanced 0.3 per cent to $3,556.21 an ounce at 0332 GMT, hovering close to Wednesday’s record peak of $3,578.50. US gold futures for December delivery edged higher to $3,615 an ounce, bringing weekly gains to 3.2 per cent. In India, retail prices stood at Rs 10,685 per gram for 24 karat gold, Rs 9,794 for 22 karat, and Rs 8,013 for 18 karat, according to Goodreturns.
The dollar index slipped 0.30 per cent, making bullion more attractive for overseas buyers. Traders are now almost certain of a 25-basis-point rate cut by the Federal Reserve on September 17, after recent US economic data pointed to labor market softness. The ADP National Employment Report showed private payrolls rose less than expected in August, while weekly jobless claims came in higher than forecasts.
“A drop in job openings, higher-than-expected layoffs, and initial jobless claims reaching a two-month high have led markets to largely price in a September rate cut,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities. He added that geopolitical tensions and concerns about the Fed’s independence under President Trump are further boosting safe-haven demand.
Investors are now awaiting US non-farm payrolls data, due later in the day, for stronger cues on the Fed’s policy stance.
Darshan Desai, CEO of Aspect Bullion & Refinery, said gold remains resilient despite being technically overbought. “Concerns over Fed independence, a weaker dollar, and tariff-related uncertainty continue to support the market,” he noted.
Rahul Kalantri, VP Commodities at Mehta Equities, said some investors booked profits ahead of the payroll report, pegging support for gold at $3,500–3,530 per ounce and resistance at $3,570–3,590.
Aksha Kamboj, Vice President of the India Bullion & Jewellers Association (IBJA) and Executive Chairperson of Aspect Global Ventures, underlined that market sentiment remains firmly risk-averse. “The mode is clearly safety and wealth preservation, with geopolitical uncertainty and the prospect of softer US interest rates continuing to underwrite gold’s allure,” she said.
She further pointed out that domestic futures had tested the ₹1,05,000–₹1,06,200 band this week. “MCX Gold futures revealed significant investor demand interest as a hedge in an uncertain global backdrop,” Kamboj observed. She also highlighted the regulatory reprieve from the GST Council’s recent reforms. “The consolidation of GST into just two rates—5% and 18%—with gold retaining a 3% levy has reduced compliance pressure on jewellers, particularly ahead of the festive season. This has provided a supportive backdrop for trade, even as intraday moves allowed for some profit-taking.”
Technical analysts maintain a bullish outlook. According to Trivedi, MCX Gold October futures could appreciate to ₹1,07,000 per 10 grams, with ₹1,06,000 acting as strong support. Manoj Kumar Jain of Prithvifinmart Commodity Research pegged support for gold at $3,555–3,584 and resistance at $3,634–3,660 per ounce, while silver has support at $41.10–40.80 and resistance at $41.84–42.10.
In the domestic market, MCX Gold is expected to find support at ₹1,05,850–1,05,400 and resistance at ₹1,07,000–1,07,720. Silver’s support lies at ₹1,23,000–1,22,200, with resistance at ₹1,25,000–1,26,300.
Analysts advise a buy-on-dips strategy. Gold can be accumulated around ₹1,05,800 with a stop loss at ₹1,05,380, targeting ₹1,07,000. Experts noted that the metal’s continued strength as a preferred hedge in a climate of economic and geopolitical uncertainty.
For silver, Kamboj noted that silver continues to shine in India’s precious metals market, buoyed by a mix of industrial demand and safe-haven buying. Despite sweeping changes by the GST Council, the levy on silver remains steady at 3 per cent, with an additional 5 per cent on making charges, offering much-needed clarity for traders amid regulatory shifts.