
On Thursday, gold and silver prices commenced the day with a modest decline, as gold futures were recorded at Rs 1,22,700 per 10 grams, while silver was priced at Rs 1,48,423 per kilogram. The slight retracement occurs in the context of worldwide fluctuations and profit-taking, subsequent to bullion’s robust ascent to unprecedented levels earlier this week. Notwithstanding the recent decline, both precious metals continue to hover close to their historical highs, bolstered by anticipations of U.S. interest rate reductions, central bank acquisitions, and consistent demand for safe-haven assets.
In international markets, gold experienced a decline as investors took profits following the previous day’s breach of the significant $4,000-per-ounce threshold, reaching a record high in the context of economic and geopolitical uncertainties, alongside expectations of further U.S. interest rate reductions. Spot gold decreased by 0.4% to $4,021.99 per ounce as of 0117, following a peak of $4,059.05 on Wednesday. U.S. gold futures for December delivery experienced a decrease of 0.7%, settling at $4,042.60. On Wednesday, gold and silver concluded the day with gains in both domestic and international markets. The December gold futures contract concluded at Rs 1,23,209 per 10 grams, reflecting an increase of 1.73%, whereas silver December futures ended at Rs 1,49,855 per kilogram, marking a rise of 2.79%.
Gold and silver experienced notable increases during a session characterized by high volatility. Gold prices have exceeded $4,050 per troy ounce for the first time, while silver has risen above $49 per troy ounce for the first time since 2011. Strong central bank purchases and a movement of global investors towards safe-haven assets through ETFs persist in bolstering prices. However, the Fed meeting minutes generated uncertainty regarding aggressive rate cuts, while a stronger dollar constrained additional gains.
“Some profit-taking in gold and silver is evident at current levels, but it could be seen as a buying opportunity from a longer-term perspective,” stated Manoj Kumar Jain. He added, “We expect gold and silver to remain volatile this week amid dollar index fluctuations and global market volatility.” Gold is anticipated to fluctuate within the range of $3,910–4,140 per troy ounce, while silver is projected to vary between $45.90–50.00 per troy ounce. As of today, the US Dollar Index stood at 98.72, reflecting a decline of 0.20 points (0.20%).