Mumbai: Gold prices on the Multi Commodity Exchange (MCX) slipped slightly in morning trade on Friday, as investors waited for the Reserve Bank of India’s (RBI) monetary policy decision.
However, a weaker US dollar and steady demand in the spot market helped limit the fall in gold rates.
During early trade, before the policy announcement, MCX gold February futures were down 0.14 per cent at Rs 1,29,892 per 10 grams, while MCX silver March contracts were up 0.74 per cent at Rs 1,79,461 per kg.
Market participants are closely watching the RBI’s Monetary Policy Committee (MPC) meeting.
Experts remain divided on what the central bank may announce because recent macroeconomic indicators have sent mixed signals.
India’s headline GDP growth remains strong, but weak nominal GDP figures and sluggish manufacturing activity have strengthened expectations of a 25-basis-point rate cut.
Globally, investors are awaiting the US inflation numbers due later today. The data will play a key role in shaping expectations about the US Federal Reserve’s next policy move, especially after recent mixed economic data from the US has added to uncertainty.
Meanwhile, the Indian rupee recovered in early trade on Friday, rising 9 paise to 89.80 against the US dollar ahead of the RBI policy announcement.
This rebound comes after a turbulent week in the currency market, during which the rupee repeatedly touched new record lows.
On Thursday, the rupee opened at 90.36 at the interbank foreign exchange market but later strengthened to close at 89.89, gaining 26 paise.
The recovery was supported by a drop in the US dollar index and possible intervention by the RBI.
A day earlier, on Wednesday, the rupee had breached the 90-mark for the first time and closed at 90.15 amid pressure from foreign investor selling, rising crude oil prices and uncertainty surrounding the delayed India–US trade deal.
--IANS