Gold and silver prices in India declined on Thursday, November 12, following weakness in intrenational bullion prices, weighed down by a stronger US dollar and rising expectations of further interest rate hikes by the US Federal Reserve.
On the Multi Commodity Exchange (MCX), gold futures slipped below Rs 1,39,000 per 10 grams, while silver futures extended their losses, reflecting broader weakness across the bullion market.
MCX gold futures for December expiry were trading at Rs 1,38,500 per 10 grams, down by Rs 1,216, or 0.87%. The contract went down to an inntraday low of Rs 1,38,399 level earlier in the session, declining Rs 1,317 from its previous close at Rs 1,39,716.
December silver futures traded lower by Rs 2,775, or 1.50%, to Rs 1,81,750 per kg. It slipped to an intarday low of Rs 1,81,723, declining as much as Rs 2,802 from its previous close at Rs 1,84,525.
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Why Are Gold And Silver Prices Falling Today?
Gold prices fell to a more than one-week low in international markets as the US dollar climbed to a 19-month high, making dollar-priced bullion more expensive for holders of other currencies.
Stronger-than-expected US inflation data for October and hawkish comments from Federal Reserve officials have increased expectations of further monetary tightening. Markets are now fully pricing in an interest-rate hike next month and another in March 2027.
Higher interest rates generally weigh on gold prices as they increase the opportunity cost of holding non-yielding assets. Investors are now awaiting US Producer Price Index data due on Friday for further clues on the inflation outlook and the Fed's policy trajectory.
Meanwhile, investment appetite had also weakened, with Indian gold ETF inflows declining 22% month-on-month (MoM) to Rs 3,470 crore in October.
Technical Outlook
Ponmudi R, CEO of Enrich Money, said gold faces immediate resistance at Rs 1,40,000 to Rs 1,41,000, while immediate support is placed at Rs 1,37,500 to Rs 1,38,300.
The RSI near 37 indicates weak momentum, and only a sustained move above Rs 1,41,000 could help restore stability, while a decisive break below Rs 1,37,500 could drag prices towards Rs 1,35,000.
For silver, immediate resistance is placed at Rs 1,88,000 to Rs 1,90,000, while support is at Rs 1,78,000 to Rs 1,80,000. The RSI is around 34, indicating that the metal is approaching oversold territory.
Ponmudi said the near-term bias for silver remains cautiously bearish, with a sustained move above Rs 1,88,000 required to restore stability, while if price goes below Rs 1,78,000, then it could further decline towards the Rs 1,72,000 level.
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