A fall in gold prices was seen on Friday.
Gold prices saw a fall of up to 4 percent during the trading session on Friday. By the way, when the country’s futures market closed late at night, gold prices were seen trading with a decline of more than 2.50 percent. According to experts, such a huge decline is rarely seen during the trading session on Friday. The price of gold fell by about Rs 5000 and came below Rs 1.22 lakh. Whereas a fall of about Rs 8,700 per kg was seen in the prices of silver.
Now the biggest question is who is the biggest villain of gold prices? After all, what is the reason for the huge decline in gold prices? Three reasons are being given behind this. The reasons for all three are related to America. First, there will be a possible rate cut by the US Federal Reserve in the month of December. Due to which a decline is being seen in the prices of gold. The second reason is to end in the American shutdown. Which will reduce American uncertainties. This will reduce the demand for safe haven. At the same time, an increase is being seen in the dollar index. Let us give you detailed information about it…
There was a big fall on Friday
On Friday, gold prices in the domestic market fell by almost Rs 5,000 per 10 grams to the day’s low of Rs 1,21,895. Which is one of the biggest intraday falls so far. However, if we look at the data of Multi Commodity Exchange, after the market closed, the price of gold fell by about Rs 3,200 and closed at Rs 1,23,561. On the other hand, gold prices in foreign markets also saw a fall of $ 127 per ounce. On the other hand, silver prices saw a huge fall of Rs 8,700 per kg, while the white metal prices touched the day’s low of Rs 1,53,729. On Comex, the price of silver fell by 5.56 percent to around $ 50.21.
Possible cut in Fed rate
Gold and silver prices fell today after aggressive comments by US Federal Reserve officials, dimming the prospects of interest rate cuts in December. The cut in interest rates by the Fed acts as a positive signal for non-yielding gold. According to CME Group’s FedWatch tool, traders now see a 49 percent chance of a quarter-point interest rate cut in December, up from 64 percent earlier this week.
End of US shutdown
With the end of the record 43-day US government shutdown, which disrupted the flow of key economic data, gold’s appeal as a safe haven has diminished. Although the White House has reduced expectations of clarity on the economy, saying that October unemployment data may not be available, its immediate impact could lead to further decline in gold and silver prices.
Increase in dollar index
On the other hand, the strength of the dollar index has also affected the prices of gold. If we look at the data, the dollar index is showing an increase of 0.12 percent and is trading at the level of 99.27. There are chances of it crossing the 100 level soon. Dollar index has seen an increase of 0.85 percent in the last one month and 1.45 percent increase in the last 3 months. Due to which further decline in gold prices may be seen in the coming days.
what do experts say
Anuj Gupta, Director of Wealth Global Research, said that due to these two developments the appeal of gold and silver has reduced. He expects the weakness in bullion to continue in the near future. Both gold and silver are at their best levels so far in 2025, and have become the best asset classes. Gupta said domestic gold prices have increased by 60% or Rs 45,700 per 10 grams, while silver prices have increased by 78% or Rs 67,700 on a year-on-year basis. In November, gold prices have increased by 1% i.e. Rs 1,262 per kg, while silver prices have increased by 4.6% i.e. Rs 6,845 per kg.