Spot gold up as futures hit 1-week high on weak dollar, Fed rate-cut bets
This story was originally published at 15:41 IST on 6 January 2026
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By Reshma Ravi
MUMBAI – Spot gold prices rose Tuesday after the gold futures contracts on the Multi Commodity Exchange of India and COMEX rose to a one-week high owing to a weak dollar and growing expectations of a rate cut by the US Federal Reserve.
Spot gold of 99.9% purity was traded in the Mumbai market at INR 136,909 per 10 grams, up from INR 136,168 per 10 grams Monday, said Kumar Jain, spokesperson, India Bullion and Jewellers Association. Dealers charged premiums of up to $15 per ounce after weeks of discounts, reflecting improved retail demand following a correction from record highs, jewellers said.
Dovish comments from a Fed official boosted interest rate cut bets, analysts said. Monday, Minneapolis Federal Reserve President Neel Kashkari said inflation was slowly moving down, but there was a risk that the jobless rate could "pop" higher. "I think the inflation risk is one of persistence, that these tariff effects take multiple years to work their way through the system, whereas I do think there's a risk that the unemployment rate could pop from here," Kashkari told CNBC in an interview. Market participants now await US non-farm payrolls data for December, due Friday, for cues on a rate cut.
"Ongoing geopolitical risks, including heightened tensions around Russia–Ukraine and stricter US enforcement against Venezuela's oil trade, continue to underpin investor appetite for gold," Kedia Advisory said.
Over the weekend, US troops attacked Venezuela and captured President Nicolas Maduro. There was talk that the president's Swiss bank accounts were frozen. The act could further boost safe-haven buying for precious metals, said an analyst.
At 1520 IST, the most-active February gold contract on the MCX was up 0.3% at INR 138,585 per 10 grams. The same-month gold contract on COMEX was up 0.5% at $4,471.4 per ounce. The gold contract on MCX rose to its highest level in more than one week of INR 138,776 per 10 grams. On COMEX, it rose to $4,486.0 per ounce. End
US$1 = INR 90.16
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Rajeev Pai
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