Mumbai, November 24: Gold prices slumped sharply on Monday morning on the Multi Commodity Exchange (MCX), tracking a strengthening US dollar and fading expectations of another US Federal Reserve rate cut in December. Easing geopolitical tensions also weighed on the safe-haven demand for bullion.
At 10:30 am, MCX Gold December futures were trading 1.17% lower at ₹1,22,740 per 10 grams, while MCX Silver December futures slipped 0.76% to ₹1,52,979 per kg.
Why Are Gold Prices Falling?
Analysts say gold lacks a fresh catalyst to sustain its recent rally. The primary drag on prices is the diminishing possibility of a US Fed rate cut next month.
Stronger-than-expected US labor data spurred investors to reassess rate cut expectations. A report from the US Labor Department showed September nonfarm payrolls rose by 119,000, more than double the forecast of 50,000, signalling resilience in the US job market.
The upbeat data pushed the US dollar index to a near six-month high, hovering above the 100 mark, reducing the appeal of gold.
Adding to the pressure, geopolitical risks appear to be easing. Reports suggest US President Donald Trump’s proposal to halt the Ukraine-Russia conflict has shown significant progress. Ukraine’s delegation head, Andriy Yermak, indicated talks are “moving forward to the just and lasting peace the Ukrainian people deserve.”
Is This the Right Time to Buy Gold?
Market experts anticipate continued volatility in precious metals as global investors monitor the dollar index, US tariff discussions, the Russia-Ukraine peace talks, and the Federal Reserve’s policy outlook.
Some analysts believe further correction in gold cannot be ruled out.
“We expect more correction in gold. International prices may fall to $3,900, while on the MCX gold may retest ₹1,18,000. So this may not be the right time to buy gold,”
said Anuj Gupta, SEBI-registered analyst.
On the other hand, certain commodity strategists suggest silver could be a more attractive opportunity in the short term.
“We expect volatility this week but recommend buying silver around ₹1,53,000–₹1,51,500 with a stop loss below ₹1,50,000 for targets of ₹1,55,500 and ₹1,57,000,”
said Manoj Kumar Jain of Prithvifinmart Commodity Research.
Key Support and Resistance Levels
Asset Support Levels Resistance Levels Gold (INR) ₹1,23,300 / ₹1,22,500 ₹1,24,750 / ₹1,25,500
Silver (INR) ₹1,53,000 / ₹1,51,500 ₹1,55,500 / ₹1,57,000
Gold (USD) $4,034 / $4,000 $4,110 / $4,140
Silver (USD) $49.40 / $48.80 $50.50 / $51.10
Outlook
Analysts are divided, but the broader market consensus suggests the near-term trend for gold remains uncertain, and investors may prefer to wait for clearer cues from the Federal Reserve and geopolitical developments.
Until then, silver may offer better tactical opportunities than gold, according to some experts.