Rupee weakens as dollar rises to 89.61, gold and silver prices stay volatile

The rupee continued to slide this week, with the dollar rising to 89.61 against the rupee, adding pressure to domestic bullion markets.

Experts believe that trade delays with the US and sanctions imposed by Trump administration, as per reports.

Gold and silver prices swung sharply amid easing global trade tensions, diminished hopes of a December US Fed rate cut, and a stronger dollar index.

According to the Indian Bullion and Jewellers Association (IBJA),

24-carat gold closed at ₹1,22,653 per 10 grams on Friday, up ₹221 from Monday’s ₹1,22,432.

Prices hit a week low of ₹1,21,691 on Tuesday and a high of ₹1,23,388 on Wednesday.

Silver ended the week at ₹1,51,129 per kg, down ₹3,804 from Monday’s ₹1,54,933.

Ponmudi R, CEO of Enrich Money, said gold saw a “healthy correction” but remains strongly bullish, with COMEX gold closing at $4,079.5 and MCX gold around ₹1,24,191, supported by a long-term rising trendline. Silver also corrected sharply but maintained its broader uptrend.

Gold prices dipped sharply on Friday following stronger-than-expected US September jobs data, which further dented expectations of an early Fed rate cut.

On the MCX (as of 12:43 pm Friday):

Gold December futures fell ₹1,067 (0.87%) to ₹1,21,697 per 10 grams.

Silver December contracts dropped 2.17% (₹3,349) to ₹1,50,802 per kg.

Spot 24-carat gold stood at ₹1,22,149, down from Thursday’s ₹1,22,881, as per IBJA.

“Gold traded highly volatile,” said Jateen Trivedi of LKP Securities. “COMEX gold fell 1% to $4,035, while MCX gold rose ₹300 due to a sharp rupee depreciation from 88.70 to 89.60.”

Gold is expected to remain volatile within ₹1,20,000–₹1,24,000, he added.

(With inputs from syndicated feed)