Gold prices shown a downward trajectory today. As the metal trading around Rs 1,20,700 per 10 grams on the Multi Commodity Exchange (MCX), down 0.58 per cent for the day. The precious metal showed no signs of optimism intraday, hitting its lowest intraday level at 11:36 a.m. (IST) at approximately Rs 1,20,350.
Compared to yesterday close, gold prices have dropped by nearly Rs 1,608, yesterday the metal closed at around Rs 1,22,146. The fall reflects a similar trend in the international market, where gold is trading lower at around $3,981.55 per troy ounce, marking a 0.5 per cent decline. On an intraday basis, the metal has dipped by 0.51 per cent globally.
The downward pressure was not limited to gold, as silver prices also witnessed a sharp fall. The white metal slipped by 1.32 per cent to trade near Rs 1,45,812 per kilogram on MCX. Yesterday, silver closed at Rs 1,47,758 , indicating a loss of nearly Rs 2500 from today’s value.
In the international market, silver too is showing weakness, currently trading around $47.54 per troy ounce, down by 1.57 per cent.
Why are precious metals dipping?
The recent fall in gold and silver prices has mostly been attributed to investors booking profits after the earlier rise in the dollar’s value. The market atmosphere became a little bit cautious. A stronger dollar typically weighs on precious metals, making them costlier for holders of other currencies. Traders are now closely eyeing the upcoming Fed meeting scheduled for December 11, which could significantly influence the commodity market.
MCX trading schedule for Guru Nanak Jayanti
According to the MCX trading holiday notice, on the occasion of Guru Nanak Jayanti (November 5), trading will remain closed during the morning session. However, investors can trade in the evening session, which will be open from 5:00 pm to 11:30/11:55 pm.
Outlook: Correction or opportunity?
The present decline might simply be a brief correction instead of a full reversal. Nevertheless, the question of whether this dip turns into a buying opportunity depends largely on the Fed’s next policy move. Any indication of rate cuts might once more attract the attention of investors to gold and silver as safe-haven assets.