Gold falls below ₹1.39 lakh per 10 grams, silver drops 1.3%: What’s driving the latest correction

Résumé détaillé

Gold and silver prices declined on Thursday, extending losses as stronger US inflation data raised concerns that the Federal Reserve will keep interest rates higher for longer.

Gold and silver prices continued to decline on Thursday, November 12, with both precious metals extending losses amid concerns that stronger-than-expected US inflation could keep interest rates higher for longer.

On the Multi Commodity Exchange (MCX), December gold futures were trading at ₹1.38 lakh per 10 grams, down 0.93%. December silver futures declined 1.32% to ₹1.82 lakh per kg.

The latest fall comes amid pressure on international bullion prices, with gold slipping below the psychologically important $4,000-per-ounce level. Stronger US inflation data has strengthened expectations of further monetary tightening by the US Federal Reserve, lending support to the dollar and US Treasury yields.

US consumer inflation rose 0.4% in October, against market expectations of 0.3%, according to market commentary shared by bullion industry participants. The higher-than-expected reading has raised concerns that the Federal Reserve may maintain a restrictive monetary policy for longer or consider another rate increase.

A stronger dollar and rising US bond yields tend to weigh on gold because the precious metal does not offer interest income. Higher yields make interest-bearing assets relatively more attractive, while a stronger dollar makes bullion more expensive for holders of other currencies.

"Gold and silver futures are facing renewed pressure as stronger-than-expected US inflation data has strengthened expectations of further Federal Reserve tightening," said Vikram Subburaj, CEO of Giottus.com.

Silver is also exposed to changes in industrial demand, making its price movements sensitive to both investment sentiment and expectations of economic growth.

According to Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions and president of the India Bullion and Jewellers Association (IBJA), gold has slipped below the $4,000-per-ounce support level and could test $3,900 an ounce if the weakness persists.

Silver, meanwhile, is awaiting a decisive move out of the…

Début de l'article, extrait de CNBC-TV18. Pour lire la suite, ouvrez l'article chez le média.