Gold prices fall ₹600 to ₹1,26,700/10 gm in Delhi on stronger dollar, weak global cues; silver rates tumble ₹2,000

Gold prices (24K, 99.9% purity) fell by ₹600 to ₹1,26,700 per 10 gram in Delhi on Thursday, November 20, due to weak global trends and a stronger dollar. The precious metal of 99.5% purity fell to ₹1,26,100 per 10 gram. 

Silver prices also fell on Thursday, falling by ₹2,000 to ₹1,58,000 per kg. 

As per market experts, a stronger dollar weakened the safe-haven demand of the precious metal after reports suggested that the US aims to end the war in Ukraine. 

Additionally, after the US Bureau of Labor Statistics announced that it would not publish the October jobs report, leaving the US Federal Reserve without crucial labour data ahead of its December meeting, the bullion market sentiment was further affected. 

In the overseas markets, spot gold fell by $16.48, or 0.40%, to $4,061.53 per ounce, while spot silver was trading 1.22% lower at $50.73 per ounce. 

"Gold and silver prices are consolidating, and market players are keeping their attention on impending economic data in search of additional hints regarding the direction of US interest rates," a PTI report quoted Renisha Chainani, Head - Research at Augmont, as saying.

The Federal Open Market Committee (FOMC) meeting minutes from the October 28-29 meeting revealed that a divided Fed lowered interest rates last month despite warnings from officials that lower borrowing costs could jeopardise the effort to control inflation.

Fed Chair Jerome Powell reinforced a cautious tone, stating that a December rate cut is not a "foregone conclusion", another PTI report said. 

Gold, silver futures

Gold futures for the December delivery fell to an intraday low of ₹1,22,000 per 10 gram on the Multi Commodity Exchange (MCX) on Thursday. The contracts were trading flat later in the day, quoting at ₹1,23,057 per 10 gram at around 7:45 pm. 

Meanwhile, the silver December contracts fell to an intraday low of ₹1,53,600 per kg on the MCX. At around 7:45 pm, however, the futures contracts were trading 0.1% up at ₹1,55,275 per kg on the MCX.