Softer US Inflation Boosts Gold and Silver; Dollar Weakens, Safe-Haven Demand Rises

Gold and silver prices rebounded sharply on Friday, closing the week on a firmer note after softer-than-expected US inflation data weakened the US dollar and revived interest in precious metals.

On the Multi Commodity Exchange (MCX), gold futures for April delivery settled higher by ₹1,662, or about 1.1%, at ₹1,54,498 per 10 grams, recovering from recent lows. Silver futures for March delivery ended the session up ₹6,065, or nearly 2.6%, at around ₹2,42,500 per kilogram, marking a stronger rebound compared with gold.

CPI Data Triggers Dollar Pullback

The recovery followed the release of US Consumer Price Index (CPI) data, which came in lower than market expectations, easing concerns over prolonged tight monetary policy by the US Federal Reserve. The softer inflation print led to a decline in the US dollar index, supporting demand for dollar-denominated assets such as gold and silver.

Earlier in the week, bullion prices had come under pressure due to stronger US economic indicators and a firmer dollar, which had reduced expectations of near-term interest rate cuts. Friday’s data helped reverse some of that sentiment, though traders remained cautious.

Wide Trading Ranges Persist

Despite the rebound, precious metals continue to trade within broad ranges. MCX gold has oscillated between ₹1,50,000 and ₹1,58,000 per 10 grams in recent sessions, while silver has seen sharp swings in the ₹2,35,000–₹2,70,000 per kg band, reflecting ongoing global macroeconomic uncertainty.

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