Gold futures in the domestic market experienced a slight decline on Thursday. The futures for February on the MCX decreased by 0.25% and were priced at ₹1,37,665 per 10 grams, while silver remained unchanged at ₹2,50,600 per kg. Among the various factors that contributed to the decrease in price were profit booking, a stronger US dollar, and rising bond yields.
However, history indicates that such declines often turn out to be the best time to buy. Since global uncertainty persists and investors are in search of safe places for their investments, gold is still the traditional hedge. For those who wish to have long-term security and protection of their portfolios, a minor setback may indeed be the opportune moment to add some glitter.
Gold Price Pressure: Why Precious Metals Are Slipping
Reasons for Precious Metals Decline:
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Profit Booking: Investors are booking profits after recent gains, putting downward pressure on gold and silver.
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Stronger US Dollar: Dollar index trades near a two-week high, making gold more expensive for overseas buyers.
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Rising Bond Yields: The 10-year US Treasury yield rebounds from Wednesday’s one-week low, increasing the opportunity cost of holding gold.
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Reduced Demand: Higher dollar value and bond yields dampen investor appetite for precious metals.
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Overall Impact: These factors collectively weigh on gold prices and silver, causing a cautious sentiment in the market.
Gold Price Update: Previous Session Performance and US Jobs Impact
| Category | Details |
|---|---|
| Previous Session Performance | February gold futures fell 0.7% |
| March silver futures lost over 3%, reflecting continued selling pressure | |
| US Jobs Data & Fed Rate Expectations | Anticipation of a US Fed rate cut after weak jobs data capped further gold losses |
| US Labor Department reported job openings fell by 303,000 to 7.146 million in November, lowest since September 2024 | |
| October openings revised down to 7.449 million |
(With Inpust From Reuters)
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