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Informist, Friday, Feb. 6, 2026

By Reshma Ravi

MUMBAI – Futures contracts of gold rose on the Multi Commodity Exchange of India on Friday, despite negative cues from the COMEX because of a weak rupee against the dollar. Market sentiment was also lifted due to a weak US labour market, which raised expectations of a rate cut by the US Federal Reserve in 2026.

At 1525 IST, the most-active April GOLD contract on the MCX was up 0.4% at INR 152,600 per 10 grams. The most-active April contract on COMEX was down 0.2% at $4,880.5 per ounce. The most-active March SILVER contract on the MCX was down 7.1% at INR 239,449 per kilogram and the same contract on COMEX was down 4% at $73.78 per ounce.

The rupee Friday closed at 90.6550, down 0.3% against the dollar. When the rupee depreciates against the dollar, prices of gold in the domestic market adjust as the precious metal is priced in rupees.

Weakness in the US labour market, which raised the expectations of a rate cut by the US Federal Reserve in 2026, also supported gold prices. Initial claims for unemployment benefits in the US jumped 22,000 to 231,000 in the week ended Jan. 31. Job openings fell by 386,000 to 6.542 million by the last day of December, the lowest level since September 2020, Reuters reported, citing the Labor Department's Bureau of Labor Statistics in its Job Openings and Labor Turnover Survey. "Labor market weakness would typically strengthen the case for interest rate cuts," ICICI Securities said in a report.

Investors expect at least two 25-basis-point rate cuts by the Fed in 2026, with the first expected in June, Reuters reported. Typically, gold performs well in a low-interest-rate environment as it is a non-interest-yielding asset.

Gold prices on the domestic exchange also rose due to a fall in the global equity market which lifted safe-haven demand for the precious metal, Manoj Jain, director at Prithvi Finmart, said. Most equity indices were down on Friday following a selloff on Wall Street. Technology stocks, particularly chip and automotive companies, took a hit as investors were worried about the huge investments in artificial intelligence and how fast-advancing AI tools might disrupt various industries.

However, the gains in gold prices on the domestic exchange could be capped as the Chicago Mercantile Exchange increased margins on the precious metals futures to mitigate risks associated with heightened volatility in the market. Both initial and maintenance margins for COMEX 100 Gold Futures have been increased to 9% from 8% for Non-Heightened Risk Profile accounts. Initial and maintenance margins for COMEX 5000 Silver Futures have been hiked to 18% from 15%, Reuters reported.

Outlook for the rest of the session:

--MCX gold seen at INR 148,000–INR 156,000 per 10 grams

--COMEX gold seen at $4,800.0–$4,980.0 an ounce

--MCX silver seen at INR 230,000-INR 250,000 per kg

--COMEX silver seen at $68.00-$78.00 an ounce

End

US$1 = INR 90.65

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Ashish Shirke

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