Indian precious metals prices jumped on Thursday, tracking spot market gains, as a sharp retreat in global crude oil prices and cooling U.S. inflation data eased expectations of further aggressive central bank rate hikes.

MCX gold futures surged by 1,000 rupees, briefly reclaiming the key 150,000 rupee mark in early trade before trimming gains slightly.Silver futures advanced by 2,200 rupees, or 1%, scaling back above 226,000 rupees per kilogram.

On the domestic front, traders expect Indian precious metal demand to remain supported heading into the Navratri festival season, though investors remain attentive to the upcoming Reserve Bank of India (RBI) monetary policy decision for local directional cues.

The rally mirrored gains in global benchmark markets, where spot gold rose 1% to top $4,175 per ounce, while spot silver outperformed with a 1.2% rise to trade around $61 per ounce.

The surge in safe-haven demand came as global oil benchmark crude prices slipped 1% to 1.5%, driven by recovering shipment volumes. U.S. West Texas Intermediate (WTI) crude fell below $90 per barrel, while Brent crude dipped below $96 per barrel.

Adding momentum to bullion was cooler-than-expected U.S. economic data. The latest U.S. Personal Consumption Expenditures (PCE) price index rose 0.3% in August against expectations of 0.4%, pulling headline PCE inflation down to 3.4%. Core PCE rose 0.2%, below the 0.3% forecast.

The softer inflation prints cooled rate hike anxieties, driving market projections for an October rate increase down to 38%, from earlier expectations above 70%.