Gold prices edged lower on Friday, dipping beneath the Rs.1.3 lakh mark on the MCX, even as silver staged a recovery after two straight sessions of losses. Market participants remained cautious ahead of the much-anticipated U.S. inflation print and next week’s Federal Reserve policy meeting.

Despite the softness in domestic futures, international gold prices held broadly steady in early Friday trade. Firm U.S. Treasury yields and a slightly stronger dollar continued to restrict any meaningful upside, leaving global sentiment subdued.

On the MCX, February 5, 2026 gold futures slipped Rs.216 (0.17%) to Rs.1,29,862 per 10 grams, while March 5, 2026 silver futures climbed Rs.1,170 (0.66%) to Rs.1,79,308 per kg, rebounding after a combined Rs.6,600 decline over the last two sessions.In the global market, spot gold eased 0.1% to $4,203.89 an ounce (0047 GMT), and U.S. gold futures dipped 0.2% to $4,233.60. The benchmark 10-year U.S. Treasury yield remained near a two-week high, while the dollar index hovered around 99.02, close to recent lows.

Fresh U.S. data added to the market’s mixed signals. Initial jobless claims fell to 191,000, their lowest level in more than three years, sharply beating expectations. This contrasted with the ADP report, which showed a 32,000 drop in private payrolls — the steepest fall in over two and a half years.

A Reuters poll of more than 100 economists indicates growing confidence that the Federal Reserve may opt for a 25-basis-point rate cut at its December 9–10 meeting to support the cooling labour market. Investors are now awaiting the release of the delayed September PCE Index, the Fed’s preferred inflation gauge, for further clarity.

Lower interest rates typically boost demand for non-yielding assets like gold, making today’s data release particularly significant for bullion traders.