Gold prices advanced on the Multi Commodity Exchange of India (MCX) on safe-haven buying ahead of upcoming United States inflation data, while silver edged lower.

MCX gold futures for October delivery rose 0.98% to ₹1.54 lakh per 10 grams, reflecting investor demand for the precious metal as a store of value amid economic uncertainty. Gold is widely regarded as a traditional safe-haven asset, particularly around the release of key macroeconomic indicators such as the US Consumer Price Index (CPI), which can influence Federal Reserve monetary policy expectations and, in turn, the dollar-denominated commodities market. Because MCX contracts are rupee-denominated, domestic gold prices also reflect movements in the USD/INR exchange rate, meaning a weaker rupee can amplify gains even if international dollar gold prices remain stable.

Silver futures on the MCX declined 0.16%, slipping to ₹2.36 lakh per kilogram. Silver often trades in correlation with gold but also carries industrial demand characteristics that can lead to divergent price movements. A significant share of silver consumption comes from industrial applications, including electronics and solar photovoltaic manufacturing, which links its price trajectory to global industrial activity and the energy transition.

The US inflation data is closely watched by commodity markets as it provides insight into the trajectory of interest rates. Higher inflation readings can boost gold's appeal as an inflation hedge, while dovish signals may pressure prices.

The MCX, based in Mumbai, is India's largest commodity derivatives exchange and serves as the primary platform for trading gold and silver futures contracts in the country. India is one of the world's largest consumers of gold, driven by jewelry demand, investment holdings, and cultural factors, making MCX price movements a widely tracked barometer of domestic sentiment. The exchange's contracts are quoted in Indian rupees per 10 grams for gold and per kilogram for silver.

Source: CNBC-TV18 Markets

This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.