Gold and silver prices witnessed a decline as investors booked profits and a stronger US dollar put pressure on precious metals. The fall came on Dhanteras, one of India’s biggest occasions for purchasing gold and silver.
Gold and Silver Trade Lower
On the Multi Commodity Exchange (MCX), December gold futures declined by around ₹2,300 to ₹1,41,808 per 10 grams during morning trading.
Silver futures also faced selling pressure, falling approximately ₹3,440 to ₹1,83,700 per kilogram. International bullion markets also remained under pressure.
Why Are Precious Metal Prices Falling?
A stronger US dollar and rising crude oil prices contributed to the weakness in gold and silver. Higher oil prices increased concerns about inflation and raised expectations that the US Federal Reserve could consider another interest rate hike in December.
Investors are also closely monitoring upcoming US employment figures for clues about the direction of monetary policy.
What Happens Next?
Market participants will continue watching movements in the US dollar, crude oil prices, bond yields and Federal Reserve decisions. These factors could influence gold and silver prices in the coming trading sessions.
Despite the latest decline, precious metals remain sensitive to global economic uncertainty and changing investment demand.
