Gold prices fall to ₹1,31,600 per 10 gm on weak global trends; silver declines by ₹900

Gold rates (99.9% purity, 24K) fell by ₹600 to ₹1,31,600 per 10 gram in Delhi on Thursday, December 4, amid weak global trends and investor caution ahead of the US Federal Reserve’s meeting next week. 

Silver also fell, extending its losses for the second straight session, declining by ₹900 to ₹1,80,000 per kg after closing at ₹1,80,900 per kg in the previous session. 

Investors took a cautious tone ahead of the Federal Open Market Committee policy decision on December 10. 

In the international markets, spot gold fell by 0.15% to $4,197.10 per ounce, while spot silver was trading 2% lower at $57.34 per ounce. 

On Wednesday, silver prices hit a lifetime high of $58.97 per ounce in the overseas markets. 

“Silver remains at record highs, as investors gain confidence in a Federal Reserve rate cut next week and exchange traded fund (ETF) inflows continue,” a PTI report quoted Renisha Chainani, Head - Research at Augmont, as saying. 

Chainani noted that silver-backed ETFs added almost 200 tons on Tuesday, bringing overall holdings to their highest level since 2022 due to strong demand, the report said. 

"Silver has risen 100% this year due to concerns about market liquidity, following outflows to US and Chinese inventory, inclusion on the US vital minerals list, and a structural supply deficit," she said.

Gold, silver futures

Gold futures for the March expiry fell to an intraday low of ₹1,29,366 per 10 gram on the Multi Commodity Exchange (MCX) on Thursday. At around 7:45 pm, the contracts were trading 0.4% down at ₹1,29,928 per 10 gram. 

Silver futures declined sharply, falling to an intraday low of ₹1,77,289 per kg on the MCX on Thursday. At around 7:45 pm, the contracts were trading 1.2% down at ₹1,80,025 per kg. 

On Wednesday, silver contracts for the March delivery hit a lifetime high of ₹1,84,743 per kg. 

The upcoming Reserve Bank of India Monetary Policy Committee decision on Friday and the US Federal Reserve meeting outcome next week are expected to signal the direction of gold prices for the coming weeks.