Good news for those buying gold and silver, how much have the prices reduced?
The dollar index has declined, yet gold and silver prices haven't seen an increase. A 0.25% rate cut by the Federal Reserve is expected, which could push gold and silver prices to new record highs.
Good news arrived on Monday for investors in gold and silver. Gold prices fell by more than ₹200 in the national futures market, while silver prices fell by more than ₹2,400. Experts say investors are treading cautiously ahead of the Fed policy meeting.
Notably, the dollar index has declined, yet gold and silver prices haven't seen an increase. A 0.25% rate cut from the Fed is expected, which could push gold and silver prices to new record levels. Let's explore the current trading levels of gold and silver in the national futures market.
Gold prices fall
Gold prices are showing a slight decline on the Multi Commodity Exchange, the country's futures market. During the trading session, gold prices fell by Rs 229 to reach the day's lowest level of Rs 1,30,233. On Friday, gold prices were at Rs 1,30,462.
Today, gold opened at Rs 1,30,431. At 9:50 am, gold was trading at Rs 1,30,417 per ten grams, down by Rs 45. Gold is currently trading at Rs 1,34,024, down by about Rs 3,600 from its lifetime high of Rs 1,34,024.
Meanwhile, silver prices on the Multi Commodity Exchange are also seen falling. According to data, silver fell by ₹2,434 during the trading session to ₹1,80,974. Silver prices closed at ₹1,83,408 on Friday.
Silver opened this morning at ₹1,81,900. At 8:50 am, silver prices fell by ₹1,588 to ₹1,81,820. Silver's lifetime high is ₹1,85,234. Currently, it is trading at a decline of about 2%.
Why are gold and silver prices fluctuating?
Gold and silver prices are experiencing significant volatility ahead of the US Federal Open Market Committee (FOMC) meeting.
The central bank will announce its policy on December 10th amid mixed macro data. According to CME's FedWatch tool, traders see an 88.4% chance of a 25 basis point interest rate cut on December 10th.
Meanwhile, expectations of an interest rate cut weighed on the US dollar. The US dollar index traded near its six-week low of 98.76, most recently reached on December 4, making dollar-denominated gold cheaper in foreign currencies.
Manoj Kumar Jain of PrithviFinmart Commodity Research reported in Mint that gold and silver prices are seeing significant volatility ahead of the FOMC monetary policy meetings.
Mixed US economic data released last week, the dollar index fell to a one-month low, and the strong possibility of a rate cut by the Federal Reserve supported prices.