Gold prices fall after US Fed minutes indicate split over rate cuts, BLS cancels October jobs data release
Gold and silver prices edged marginally lower on Thursday, November 20, as fading hopes of a US interest rate cut continued to dampen sentiment for the precious metals. The latest US Fed Minutes indicated a split among Federal Reserve officials over the need for rate cuts, torn between concerns about a weakening labor market and persistent inflation.
Traders now assign just a 30% chance of a rate cut next month, down from 50% a day earlier.
On the MCX, December gold futures were down Rs 140 or 0.11%, slipping to Rs 1,22,800 per 10 grams. However, silver futures witnessed an uptick, gaining Rs 648 or 0.42% to Rs 1,55,755 per kilogram.
The Fed meeting minutes revealed a divided Federal Reserve that cut rates last month despite concerns that easing too soon could undermine progress on inflation, which has remained above the 2% target for over four years. Governor Powell reinforced a cautious tone, stating that a December rate cut is not a “foregone conclusion.”
“Market uncertainty intensified after the U.S. Bureau of Labor Statistics unexpectedly cancelled the October employment report, sharply reducing December rate-cut odds from 50% to 30% and injecting further volatility into the macro landscape. Adding to the political noise, President Trump again criticized Powell for not cutting rates faster. Volatility in the market was also higher as market digest the Japan carry-trade unwinding concerns, though that pressure is not fully resolved and may continue to influence short-term volatility,” Manav Modi, Analyst at Motilal Oswal said.
In the international market, Gold prices trimmed earlier gains after the Federal Reserve’s latest meeting minutes tempered market sentiment, even as investors awaited fresh economic data for clearer signals on the U.S. interest rate trajectory. Spot gold rose 0.2% to $4,073.79 per ounce by, having earlier climbed more than 1%, while U.S. December futures settled 0.4% higher at $4,082.80. Among other precious metals, spot silver gained 0.7% to $51.05, platinum advanced 0.7% to $1,543.12, and palladium slipped 1.6% to $1,378.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.
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“Investors worry that upcoming data could constrain the Fed’s ability to ease further amid policymakers’ skepticism. Meanwhile, concerns over lofty tech valuations have weighed on risk sentiment, potentially increasing gold’s safe-haven appeal amid the ongoing equity market sell-off. MCX Gold December to stay in a range from Rs 122,000 to 123,000/10g. A clear trend may emerge beyond these boundaries,”Jigar Trivedi, Senior Research Analyst at Reliance Securities said.
Gold rates in physical markets
Gold Price today in Delhi
Standard gold (22 carat) prices in Delhi stand at Rs 91,688/8 grams while pure gold (24 carat) prices stand at Rs 1,00,016/8 grams.
Gold Price today in Mumbai
Standard gold (22 carat) prices in Mumbai stand at Rs 91,568/8 grams while pure gold (24 carat) prices stand at Rs 99,896/8 grams.
Gold Price today in Chennai
Standard gold (22 carat) prices in Chennai stand at Rs 92,808/8 grams while pure gold (24 carat) prices stand at Rs 1,01,248/8 grams.
Gold Price today in Hyderabad
Standard gold (22 carat) prices in Hyderabad stand at Rs 91,568/8 grams while pure gold (24 carat) prices stand at Rs 99,896/8 grams.
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