Gold and silver prices advanced on the Multi Commodity Exchange (MCX) of India on Friday, extending gains posted earlier in the week as easing crude oil prices and shifting expectations around U.S. interest rates bolstered investor sentiment.

Over the week, gold prices rose by approximately Rs 6,400 per 10 grams, while silver climbed Rs 11,502 per kilogram. The rally was supported by optimism linked to geopolitical developments and expectations that the U.S. Federal Reserve may adjust its monetary policy stance in the near term.

India is one of the world's largest consumers of gold, and domestic prices on the MCX are influenced not only by global bullion trends but also by the rupee-dollar exchange rate, as the country imports the vast majority of its gold supply. Silver, which carries both precious-metal and industrial-demand characteristics, often sees amplified price swings relative to gold.

Market participants are now awaiting the release of the U.S. nonfarm payrolls report, a closely watched economic indicator that provides insight into employment trends and wage growth. The data is expected to offer clues about the Federal Reserve's next policy decision, as the central bank weighs inflation trends against labor market conditions.

Analysts have advised caution ahead of the key data release, noting that the report could introduce volatility across commodity and financial markets. Lower interest rates typically reduce the opportunity cost of holding non-yielding assets such as gold, which can support prices. Conversely, stronger-than-expected employment data could reinforce a more hawkish Fed stance.

The MCX, headquartered in Mumbai, is India's largest commodity derivatives exchange and serves as the primary domestic platform for trading precious metals futures and other commodities.

Source: Economic Times Markets