Gold falls by ₹1,200 to ₹1.24 lakh/10 gm on weak global trends; silver down ₹2,500

Gold rates (99.9% purity, 24K) in Delhi declined by ₹1,200 to ₹1,24,100 per 10 gram on Tuesday, November 4, amid weak global cues after comments from several US Federal Reserve officials lowered hopes for another rate cut in December. 

The US Fed cut the interest rates by 25 basis points (bps) in October, but said that the expectations for another one in December are premature. 

Gold of 99.5% purity fell to ₹1,23,500 per 10 gram, extending losses for the second straight session, 

Silver also fell sharply on Tuesday, declining by ₹2,500 to ₹1,51,500 per kg after closing at ₹1,54,000 per kg on Monday. 

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.12% to 99.99, to a three-month high. This put further downward pressure on precious metals.

In the international markets, spot gold slipped by $7.84 (0.2%) to $3,993.65 per ounce, while silver was trading around 1% down at $47.73 per ounce. 

Meanwhile, Fed Governor Lisa Cook, along with Mary Daly and Austan Goolsbee, highlighted labour market concerns but refrained from committing to another cut in December.

Investors will now focus on cues from US macroeconomic data, including the Michigan consumer sentiment index, ISM PMI figures and ADP private payroll data, for insights into bullion outlook. 

The extended US government shutdown has delayed several key economic releases, including monthly jobs data, creating uncertainty in markets.

Importantly, gold and silver rise in uncertain situations, as the yellow metal is a safe-haven asset. Silver rises with gold and has also been rising due to its increased industrial demand. 

World Gold Council Gold Demand Trends

In a recent report, the World Gold Council (WGC) said investor demand continued to dominate in the third quarter (July-September).