(MENAFN- IANS) Mumbai, Oct 10 (IANS) Gold and silver prices rose on the Multi Commodity Exchange (MCX) on Friday, supported by a weaker US dollar and strong global cues.

Steady demand in the spot market also helped keep precious metals firm.

On the MCX, gold December futures were trading 0.38 per cent higher at Rs 1,20,951 per 10 grams, while silver December futures were almost flat during the same time.

The US dollar index slipped over 0.20 per cent during the session, making gold cheaper for buyers holding other currencies.

Since gold is priced in dollars, any weakness in the US currency tends to increase its demand globally.

In the previous session, gold prices had hit a record high of Rs 1,23,677 per 10 grams, while silver touched a new high of Rs 1,53,388 per kg.

Experts say gold prices are on a strong upward trend due to global economic and political uncertainties, especially in the US.

Expectations of an interest rate cut by the US Federal Reserve have further boosted investor sentiment.

According to reports, traders are expecting a 25-basis-point rate cut in October with a 95 per cent probability, and another similar cut in December with an 82 per cent chance.

Meanwhile, US gold futures were set to post gains for the eighth straight week, driven by hopes of a Fed rate cut, political instability in Japan and France, and the ongoing government shutdown in the United States.

“Gold fell below $4,000/oz after briefly surpassing that milestone, marking its biggest decline in two months,” market experts said.

“Profit-taking and dollar strength offset safe-haven demand from the shutdown, Japanese fiscal concerns, and France's political crisis. A Gaza ceasefire between Hamas and Israel further reduced safe-haven flows,” they added.

Oil slipped 1.6 per cent to near $65/bbl on reduced Middle East supply risk following the Gaza ceasefire announcement.

“Higher US inventories, as per EIA data, added downward pressure,” analysts added.

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