Gold and Silver Prices Drop as Stronger US Dollar Pressures Demand
Mumbai, Nov 17: Gold and silver prices declined in the domestic futures market on Monday morning as the US dollar strengthened and global sentiment turned weak.
At the opening trade, MCX Gold (December futures) fell 0.21% to ₹1,23,300 per 10 grams.
Meanwhile, MCX Silver (December futures) slipped 0.38%, trading at ₹1,55,424 per kg.
Market analysts highlighted key technical levels, noting:
- Gold Support: $4035–4000 | Resistance: $4115–4140
- Silver Support: $50.30–49.85 | Resistance: $51.25–51.50
In the Indian market:
- Gold Support: ₹1,22,950–₹1,22,380 | Resistance: ₹1,24,950–₹1,25,500
- Silver Support: ₹1,53,850–₹1,52,500 | Resistance: ₹1,56,740–₹1,57,880
The US dollar index gained 0.14%, making gold costlier for buyers using other currencies, thereby pressuring global demand.
Investors are now closely watching major US economic indicators due this week, particularly the September nonfarm payrolls report, expected on Thursday. The data will offer clearer signals about the economy’s strength and may influence the Federal Reserve’s December monetary policy decision.
The recent US government shutdown had delayed key economic reports, but the Commerce Department’s Bureau of Economic Analysis is expected to update the release schedule soon.
Last week, gold and silver saw volatile movements, dropping from recent highs after hawkish comments from the Federal Reserve dampened investor confidence.
“Metals softened as participants prepared for a busy week of delayed US data. The upcoming nonfarm payrolls report is expected to be crucial for the Fed’s policy outlook,” market watchers noted.
Expectations of a December rate cut have fallen to 46%, further weighing on sentiment. However, despite short-term volatility, both precious metals remain on track for one of their strongest annual gains in decades.
Experts say strong central bank buying and ongoing safe-haven demand amid global fiscal and geopolitical uncertainty continue to support gold’s long-term outlook.
