On Monday, gold prices on the MCX approached their three-week low, commencing at Rs 1,21,284 per 10 grams, reflecting a decline of Rs 224 or 0.18%. The prices of the yellow metal currently stand Rs 11,000 lower than their peak of Rs 1,32,294 per 10 grams, reached on October 17. Silver prices demonstrated resilience, commencing at an elevated level of Rs 1,49,374/kg, reflecting an increase of Rs 1,087 or 0.73%. In the international market, gold prices declined on Monday, influenced by a stronger dollar as investors reduced expectations for additional Federal Reserve rate cuts following Chair Jerome Powell’s hawkish comments last week, while diminishing U.S.-China trade tensions also impacted bullion.
Spot gold experienced a decline of 0.8%, trading at $3,968.76 per ounce, as of 0016. U.S. gold futures for December delivery decreased by 0.5%, settling at $3,978.30 per ounce. On Friday, gold and silver concluded on a subdued note in both domestic and international markets. The December futures contract for gold concluded at Rs 1,21,232 per 10 grams, reflecting a decline of 0.23%. Meanwhile, the December futures contract for silver settled at Rs 1,48,287 per kilogram, marking a decrease of 0.37%. Gold and silver experienced significant volatility last week, retreating from their peaks following a reduction in US-China trade tensions and notable increases in the dollar index.
The dollar index reached three-month highs, while U.S. 10-year bond yields surpassed the 4.0% threshold, contributing to a reduction in safe-haven demand for precious metals. Today, the US Dollar Index was hovering near the 99.76 mark, falling 0.05 or 0.05%. “The Fed Chairman also stated that there is no assurance of interest rate reductions in the December policy meetings, which also constrains the gains of precious metals. Nonetheless, the purchasing activities of global central banks, coupled with prevailing global uncertainties, are providing support for the prices of gold and silver,” stated Manoj Kumar Jain.
“We anticipate that gold and silver prices will exhibit volatility this week, influenced by fluctuations in the dollar index, instability in global financial markets, and developments regarding the US-China trade agreement,” he added. Gold is projected to trade within the range of $3,870-4,140 per troy ounce, while silver is expected to fluctuate between $46.50-50.50 per troy ounce this week.