Gold, silver prices open lower on hawkish US Fed commentary. What should you do?
Gold and silver prices fell in early trade on Monday, November 17, as investors booked profits following a sharp global rally this year and hawkish comments from the U.S. Federal Reserve officials, which tempered expectations of a December rate cut. On the Multi Commodity Exchange (MCX), gold futures for December delivery slipped by Rs 420 or 0.34%, trading at Rs 1,23,141 per 10 grams.
Silver futures also eased, declining Rs 786 or 0.5% to Rs 1,55,232 per kilogram. Persistent inflation worries and signs of strength in the U.S. labour market—even after two rate cuts this year—have prompted several Fed officials to remain cautious about further monetary easing. The Fed had trimmed rates by 25 basis points last month, but Chair Jerome Powell signalled a careful approach to additional cuts, noting limited incoming data.
In the international market, Gold prices edged up on Monday as investors looked ahead to a raft of U.S. economic data due this week, which could provide clearer signals on the Federal Reserve’s future rate trajectory.
Spot gold rose 0.1% to $4,083.92 per ounce as of 0256 GMT, while U.S. gold futures for December delivery slipped 0.2% to $4,085.30 per ounce.
The dollar index held steady against major currencies, making bullion relatively less appealing for holders of other currencies. Among other precious metals, spot silver gained 0.8% to $50.96 per ounce. Platinum advanced 0.7% to $1,552.36, while palladium climbed 1.7% to $1,408.13.
Gold—being a non-interest-bearing asset—typically finds favour in low-rate environments and during periods of economic strain. Meanwhile, the reopening of the U.S. government after a record 43-day shutdown eased some investor jitters and restored the normal release of economic indicators.
How should you trade gold?
“Gold prices stayed weak after yesterday’s evening sell-off, as comments from Federal Reserve members suggesting that the lack of fresh economic data could delay further rate cuts dampened sentiment in bullion,” Jateen Trivedi of LKP Securities said. “The dollar index strengthened, adding additional pressure on gold. Prices slipped from this week’s high of Rs 1,27,000 to Rs 1,25,600 but still hold weekly gains of around 4%. Gold is expected to remain volatile within a range of Rs 1,24,000–Rs 1,27,500.”
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 91,832/8 grams while pure gold (24 carat) prices stand at Rs 1,00,608/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 91,712/8 grams while pure gold (24 carat) prices stand at Rs 1,00,056/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 92,392/8 grams while pure gold (24 carat) prices stand at Rs 1,00,792/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 91,712/8 grams while pure gold (24 carat) prices stand at Rs 1,00,056/8 grams.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)