Gold prices extended their decline for the third straight week, pressured by a stronger US dollar and cautious remarks from Federal Reserve officials that curbed investor appetite for safe-haven assets, analysts said.
The sustained firmness in the greenback and the US central bank’s wait-and-watch stance have kept bullion trading in a narrow range through the holiday-shortened week, they added.
On the Multi Commodity Exchange (MCX), gold futures for December delivery slipped Rs 165, or 0.14%, during the week to close at Rs 1,21,067 per 10 grams on Friday. The yellow metal hovered around the Rs 1.21 lakh mark, still Rs 11,000 below its October 17 peak of Rs 1.32 lakh per 10 grams, PTI reported.
In global markets, Comex gold futures for December rose $13.3, or 0.33%, in the week to settle at $4,009.8 per ounce on Friday. Prices briefly traded above $4,000 before retreating as the dollar strengthened.
“Gold traded in a tight consolidation range through the week. While bargain-buying emerged on mid-week dips, the strong directional momentum visible in October has tapered,” said Chirag Doshi, CIO of Fixed Income Assets, LGT Wealth India. “The market appears to be in a pause-and-assess phase, waiting for cues from the US dollar and Treasury yields before larger positions are taken,” he added.
According to NS Ramaswamy, Head of Commodity & CRM at Ventura, gold prices remain supported by expectations of another Fed rate cut. “The dollar index has stayed within the 98–100 range since August. A softer dollar could provide near-term relief for bullion,” he said.
Ramaswamy added that the prolonged US government shutdown, now in its second month, has delayed key economic reports, including employment and inflation data, creating a “data vacuum” and heightening uncertainty.
“Private reports indicate weakness in the labour market, which could push the Federal Reserve to ease policy rates sooner. Lower rates tend to support gold,” he said.
Doshi noted that a stronger dollar and higher bond yields initially weighed on precious metals, while renewed risk aversion later in the week offered limited support. “A key negative catalyst came from China’s decision to reduce its VAT exemption on certain retail gold purchases, likely cooling physical demand sentiment in Asia,” he said.
Silver underperforms amid industrial demand concerns
Silver followed a similar consolidation pattern, underperforming gold as industrial sentiment weakened amid global slowdown worries.
On the MCX, silver futures for December delivery fell Rs 559, or 0.38%, during the week to close at Rs 1,47,728 per kilogram on Friday. Comex silver futures for December also edged lower to settle at $48.14 an ounce.
“Silver continued to show high-beta behaviour, moving more sharply than gold on both upswings and pullbacks,” said Doshi. “Short bursts of festive and industrial demand triggered quick rallies, but these were offset by profit-taking, suggesting short-term traders are driving price action.”
He added that continued ETF outflows have removed a key support factor, making domestic prices more vulnerable to global volatility. However, the weak rupee helped cushion losses, leading to consolidation rather than a steep correction, Doshi said.
The sustained firmness in the greenback and the US central bank’s wait-and-watch stance have kept bullion trading in a narrow range through the holiday-shortened week, they added.
On the Multi Commodity Exchange (MCX), gold futures for December delivery slipped Rs 165, or 0.14%, during the week to close at Rs 1,21,067 per 10 grams on Friday. The yellow metal hovered around the Rs 1.21 lakh mark, still Rs 11,000 below its October 17 peak of Rs 1.32 lakh per 10 grams, PTI reported.
In global markets, Comex gold futures for December rose $13.3, or 0.33%, in the week to settle at $4,009.8 per ounce on Friday. Prices briefly traded above $4,000 before retreating as the dollar strengthened.
“Gold traded in a tight consolidation range through the week. While bargain-buying emerged on mid-week dips, the strong directional momentum visible in October has tapered,” said Chirag Doshi, CIO of Fixed Income Assets, LGT Wealth India. “The market appears to be in a pause-and-assess phase, waiting for cues from the US dollar and Treasury yields before larger positions are taken,” he added.
According to NS Ramaswamy, Head of Commodity & CRM at Ventura, gold prices remain supported by expectations of another Fed rate cut. “The dollar index has stayed within the 98–100 range since August. A softer dollar could provide near-term relief for bullion,” he said.
Ramaswamy added that the prolonged US government shutdown, now in its second month, has delayed key economic reports, including employment and inflation data, creating a “data vacuum” and heightening uncertainty.
“Private reports indicate weakness in the labour market, which could push the Federal Reserve to ease policy rates sooner. Lower rates tend to support gold,” he said.
Doshi noted that a stronger dollar and higher bond yields initially weighed on precious metals, while renewed risk aversion later in the week offered limited support. “A key negative catalyst came from China’s decision to reduce its VAT exemption on certain retail gold purchases, likely cooling physical demand sentiment in Asia,” he said.
Silver underperforms amid industrial demand concerns
Silver followed a similar consolidation pattern, underperforming gold as industrial sentiment weakened amid global slowdown worries.
On the MCX, silver futures for December delivery fell Rs 559, or 0.38%, during the week to close at Rs 1,47,728 per kilogram on Friday. Comex silver futures for December also edged lower to settle at $48.14 an ounce.
“Silver continued to show high-beta behaviour, moving more sharply than gold on both upswings and pullbacks,” said Doshi. “Short bursts of festive and industrial demand triggered quick rallies, but these were offset by profit-taking, suggesting short-term traders are driving price action.”
He added that continued ETF outflows have removed a key support factor, making domestic prices more vulnerable to global volatility. However, the weak rupee helped cushion losses, leading to consolidation rather than a steep correction, Doshi said.
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