Rupee slipped 2.5% versus the U.S. dollar on Tuesday, lifting Indian gold futures to Rs 1.51 lakh per 10 grams on the Multi Commodity Exchange, Jateen Trivedi of LKP Securities said.
The softening dollar eased bond yields and dampened inflation worries, while a Friday dip in crude prices added to the cushion for domestic bullion. Trivedi added that the rupee’s weakness lifts the landed cost of imported gold, keeping MCX prices stable even as Comex prices hover around $4,216.
Across the globe, U.S. gold futures rose 1.3% to $4,216.3 per ounce, while silver settled at $61.05 after a brief dip. Pranav Mer of JM Financial noted that bargain buying at lower levels helped the metals recover over the last two sessions, but a supply surplus forecast for 2027 could restrain silver’s upside.
Geopolitical jitters remain, with the U.S.-Iran standoff lingering and U.S. President Donald Trump hinting at possible Saudi strikes against Iranian‑backed Houthi rebels. Analysts say such tensions could spill into the precious‑metal market if the conflict escalates.
The next week will hinge on the Federal Reserve’s policy meeting on October 5‑6, where officials may hint at a rate hike or delay it to December. Inflation data from India, China and the U.S. due in the coming days will further clarify the outlook for gold and silver.
A small gold trader in Mumbai, who sold a 12‑gram piece to a family fleeing a flood, said he feels the market’s steadiness gives him breathing room to plan for the next year.