Gold and silver prices open lower after aggressive comments from the US Fed. What should you do?

Gold and silver prices fell in early trading on Monday, November 17, as investors booked profits following a sharp global rally this year and hawkish comments from the US Federal Reserve, which dampened expectations of a rate cut in December. On the Multi Commodity Exchange (MCX), gold futures for December delivery fell by Rs 420 or 0.34% at Rs 1,23,141 per 10 gram.Silver futures have also declined, down Rs 786 or 0.5% to Rs 1,55,232 per kilogram. Lingering inflation concerns and signs of strength in the U.S. labor market — even after two rate cuts this year — have prompted several Fed officials to remain cautious about further monetary easing. The Fed had cut rates by 25 basis points last month, but Chairman Jerome Powell signaled a cautious approach to further cuts and noted that incoming data was limited.

In the international market, gold prices rose on Monday as investors looked ahead to a set of US economic data due this week that could provide clearer signals about the Federal Reserve’s future interest rate trajectory.

Spot gold rose 0.1% to $4,083.92 an ounce as of 0256 GMT, while US gold futures for December delivery fell 0.2% to $4,085.30 an ounce.

The dollar index remained stable against major currencies, making bullion relatively less attractive to holders of other currencies. Among other precious metals, spot silver gained 0.8% to $50.96 an ounce. Platinum rose 0.7% to $1,552.36, while palladium rose 1.7% to $1,408.13.

Gold – a non-interest-bearing asset – is typically favored in low interest rate environments and during periods of economic stress. Meanwhile, the US government’s reopening after a record 43-day shutdown eased some investor jitters and restored normal publishing of economic indicators.

How should you trade gold?

“Gold prices remained weak after last night’s sell-off as comments from Federal Reserve members suggesting the lack of new economic data could delay further rate cuts dampened sentiment in the precious metal,” said Jateen Trivedi of LKP Securities. “The dollar index strengthened, adding further pressure on gold. Prices fell from this week’s high of Rs 1,27,000 to Rs 1,25,600, but are still showing a weekly gain of around 4%. Gold is expected to remain volatile in a range of Rs 1,24,000 to Rs 1,27,500.”

Gold rates in physical markets

Gold Price Today in Delhi
The standard gold price (22 carat) in Delhi is Rs 91,832/8 gram, while the price of pure gold (24 carat) is Rs 1,00,608/8 gram.

Gold Price Today in Mumbai

The standard gold price (22 carat) in Mumbai is Rs 91,712/8 gram, while the price of pure gold (24 carat) is Rs 1,00,056/8 gram.

Gold Price Today in Chennai

The standard gold price (22 carat) in Chennai is Rs 92,392/8 gram, while the price of pure gold (24 carat) is Rs 1,00,792/8 gram.

Gold Price Today in Hyderabad

The standard gold price (22 carat) in Hyderabad is Rs 91,712/8 gram while the price of pure gold (24 carat) is Rs 1,00,056/8 gram.

(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times)