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Gold, Silver Climb as Markets Put December Fed Cut Odds Above 80%

Weak, delayed US reports reinforced a dovish outlook that lifted futures across global and Indian markets.

Overview

  • On MCX, December gold rose Rs 475 to Rs 1,25,700 per 10 grams and December silver gained Rs 1,388 to Rs 1,57,709 per kilogram.
  • Comex December gold advanced $28.20 to $4,193.40 an ounce as silver ticked up to $51.61 an ounce.
  • Traders now price more than an 80% chance of a 25 basis point US rate cut in December, up from about 50% a week earlier.
  • Analysts linked the move to delayed US data signaling cooling momentum, citing soft September retail sales and producer prices in line with expectations.
  • Some analysts say gains could be restrained by signs of easing geopolitical risk, while Indian city retail 24K prices were about Rs 87 higher day on day.