New Delhi, Nov 4: Gold and silver prices fell in domestic and international markets on Tuesday as the strengthening US dollar and easing tensions between the United States and China reduced the demand for safe-haven assets.
On the Multi Commodity Exchange (MCX), gold futures for December delivery slipped by ₹836, or 0.69%, to ₹1,20,573 per 10 grams in a turnover of 13,332 lots. Similarly, silver futures for December delivery dropped ₹1,558, or 1.05%, to ₹1,46,200 per kilogram in 20,939 lots.
The US dollar index rose 0.08% to 99.95, weighing on gold prices globally. On the Comex, gold for December delivery traded lower by USD 19.19, or 0.48%, at USD 3,994.81 per ounce, while silver futures fell 0.62% to USD 47.75 an ounce marking the third consecutive day of losses.
“Gold hovered near USD 4,000 an ounce as the dollar held firm at a three-month high. Diminishing chances of another Federal Reserve rate cut and easing US-China trade tensions have capped bullion’s appeal,” said Manav Modi, Analyst Precious Metals Research at Motilal Oswal Financial Services Ltd.
Fed policymakers have expressed differing views on the economy’s strength ahead of the December meeting, adding to uncertainty. The ongoing US government shutdown has delayed key macroeconomic data, further complicating rate expectations, Modi added.
Jigar Trivedi, Senior Research Analyst at Reliance Securities, noted, “Investors are waiting for US private payroll data this week for more clarity on the Fed’s policy path. Meanwhile, safe haven demand has softened after Washington and Beijing extended their tariff truce and eased trade barriers.”
Analysts expect gold and silver prices to remain under short-term pressure as traders weigh the impact of a stronger dollar, easing geopolitical risks, and mixed signals from the US economy ahead of critical economic data releases.