COMEX gold falls below $4,000 an ounce, silver declines: Key factors investors should track

Detailed summary

Gold and silver prices declined in international markets on Thursday amid uncertainty over the US Federal Reserve interest rate outlook and a stronger US dollar.

Gold and silver prices declined in international markets on Thursday, November 12, tracking continued pressure on bullion amid uncertainty over the US Federal Reserve's interest rate outlook and movements in the US dollar.

On COMEX, gold futures were trading at $3,985.20 per ounce, down $15.30 or 0.38% from the previous close of $4,000.50 an ounce. Silver futures were trading at $51.555 per ounce, declining $0.447 or 0.86% from the previous close of $52.002 an ounce.

Gold slipped below the psychologically important $4,000-per-ounce mark, while silver witnessed a sharper decline in percentage terms.

The latest movement comes after both precious metals faced selling pressure in the previous session.

In the domestic market, gold prices in Delhi declined by ₹800 to ₹1.45 lakh per 10 grams on Wednesday (November 11), while silver prices fell ₹5,000 to ₹1.87 lakh per kg, according to PTI.

Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, attributed the domestic decline partly to subdued trading activity during the Diwali holiday period, with several local markets remaining closed.

The US Federal Reserve's interest rate outlook remains an important factor influencing precious metal prices.

Persistent inflation and hawkish signals from the US central bank have raised concerns that interest rates could remain elevated for longer. Higher interest rates generally weigh on gold, which does not offer any regular interest income, by increasing the relative attractiveness of interest-bearing assets such as bonds.

The US dollar is another factor to watch. A stronger dollar makes dollar-denominated commodities such as gold and silver more expensive for buyers using other currencies, potentially limiting demand.

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