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Gold Falls Below Rs 1.5 Lakh And Silver Drops 6.4%: Should You Buy Now?
- •Gold futures for December delivery on the MCX fell by 2.4% last week to Rs 1.47 lakh per 10 grams, while silver futures dropped 6.4% to Rs 2.11 lakh per kg.
- •Market analysts attribute the recent price fluctuations to rising geopolitical tensions in West Asia, crude oil prices touching $110 per barrel, and a stronger rupee.
- •A stronger rupee, which moved from around 96.8 to 94.8 due to RBI intervention and dollar position cuts, helped reduce the cost of importing gold and put downward pressure on domestic prices.
- •In international markets, December Comex gold futures fell by about 1% to $4,181.10 per ounce, and silver futures dropped by 6.13% to $57.30 per ounce.
- •Investors are closely watching upcoming US Federal Reserve rate decisions, global economic data from China and the US, and crude oil supply trends before making buying decisions.
Key Questions Answered
December gold futures on the Multi Commodity Exchange fell by 2.4% to Rs 1.47 lakh per 10 grams, while silver futures dropped 6.4% to Rs 2.11 lakh per kg. The declines were driven by rising geopolitical tensions, surging crude oil prices touching $110 per barrel, and movements in the rupee.
The rupee strengthened from around 96.8 to 94.8 due to Reserve Bank of India intervention and traders cutting dollar positions. This currency movement helped reduce the cost of importing gold, putting downward pressure on domestic prices.
Investors are monitoring China’s economic data, US housing data, consumer sentiment, inflation expectations, and PMI readings from India, the US, and the UK. Additional factors include the US Federal Reserve's interest-rate outlook, crude oil supply, and developments in West Asia.
