Gold Futures Slide as Markets Brace for Potential Fed Rate Cuts

Gold futures retreated on Thursday, tracking softer global trends and sluggish demand in India’s spot market. Traders are now shifting their focus to upcoming U.S. monetary policy decisions, with expectations of rate cuts shaping movement across precious metals.

Gold Declines on MCX While Silver Rebounds

On the Multi Commodity Exchange (MCX), December gold futures slipped by ₹198 or 0.16%, settling at ₹1,25,733 per 10 grams. Trading activity remained moderate, with 6,075 lots exchanged during the session.

Silver, however, broke away from the weakness. December silver futures climbed ₹2,069, or 1.28%, to ₹1,63,341 per kilogram, supported by stronger buying after a soft opening.

Global Gold Prices Ease but Stay Firm

Internationally, gold prices pulled back to around USD 4,150 per ounce, though the metal still hovered close to a two-week peak.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, said the market remains positioned for a Federal Reserve rate cut next month, which helped keep gold relatively supported.

Trivedi added that recent U.S. data offered mixed signals. Jobless claims were unexpectedly low, and durable goods orders were stronger than forecast. Even so, these figures did not shift expectations for monetary easing.

Silver Extends Winning Streak Globally

Global silver prices also advanced. The December silver contract gained 1.25% to USD 53.57 per ounce, marking its fourth straight day of growth as investors rotated back into industrial metals.

Rate-Cut Expectations Strengthen Precious Metals Outlook

According to Renisha Chainani, Head of Research at Augmont, traders continue to prioritize the broader trend of weakening demand indicators and dovish commentary from the Federal Reserve.

Chainani noted that both gold and silver recently reached two-week highs, helped by a softer U.S. dollar and a lower opportunity cost of holding bullion.

She also highlighted that markets now assign an 85% probability of a 25-basis-point rate cut in December, a substantial jump from about 30% only a week earlier.

Projections indicate that three additional rate cuts may follow before the end of 2026, a scenario that could lend long-term support to precious metals.

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