New Delhi, Nov 4: Gold and silver prices fell on Tuesday in domestic futures trade as a stronger dollar and easing trade tensions between the US and China reduced the precious metals’ safe-haven demand.
On the Multi Commodity Exchange (MCX), gold futures for December delivery declined by ₹836, or 0.69%, to ₹1,20,573 per 10 grams in 13,332 lots. Silver futures for December delivery also fell sharply by ₹1,558, or 1.05%, to ₹1,46,200 per kilogram in 20,939 lots.
Globally, Comex gold traded lower amid a firm dollar and fading prospects of another US Federal Reserve rate cut next month. The yellow metal for December delivery slipped $19.19, or 0.48%, to $3,994.81 per ounce, while Comex silver dropped 0.62% to $47.75 an ounce, extending losses for a third consecutive day.
Analysts attributed the decline to a combination of factors, including the strengthening dollar, reduced geopolitical tensions, and uncertainty over US monetary policy.
“Gold hovered around the $4,000 mark as the dollar stayed resilient near three-month highs. Easing US-China trade tensions and diminished chances of another Fed rate cut in December have blunted bullion’s demand,” said Manav Modi, Analyst – Precious Metals Research, Motilal Oswal Financial Services.
Adding to the mixed sentiment, Federal Reserve officials expressed differing views on the economy’s health, while the ongoing US government shutdown has delayed key macroeconomic data releases, clouding market outlook.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted that investors are awaiting US private payroll data for more clarity on the Fed’s rate trajectory. “With easing trade tensions and a strong dollar, safe-haven demand for gold has softened, and prices may remain under pressure in the near term,” he added. (Agencies)
