MUMBAI, India — Gold and silver prices declined in early trading on Monday as a stronger U.S. dollar and weak global cues weighed on investor sentiment.
On the Multi Commodity Exchange (MCX), December gold futures dropped 0.21 percent to Rs 1,23,300 per 10 grams. Silver futures for December delivery were also down, slipping 0.38 percent to Rs 1,55,424 per kilogram.
Analysts noted that gold has support levels at $4,035–$4,000 per ounce and resistance around $4,115–$4,140. Silver’s support is seen at $50.30–$49.85, with resistance at $51.25–$51.50. In Indian rupee terms, support for gold lies at Rs 1,22,950–1,22,380, while resistance is between Rs 1,24,950 and Rs 1,25,500. Silver support is pegged at Rs 1,53,850–1,52,500, with resistance at Rs 1,56,740–1,57,880.
The dollar index rose 0.14 percent, making gold more expensive for holders of other currencies. Because gold is priced in U.S. dollars, a stronger dollar typically leads to lower demand and softer prices.
Market participants are now looking ahead to key U.S. economic data due later this week, including the delayed September nonfarm payrolls report, expected Thursday. These figures are likely to influence expectations for the Federal Reserve’s December interest rate decision.
The release of several economic indicators was delayed after the U.S. government shutdown, though reports indicate that the Commerce Department’s Bureau of Economic Analysis is working to update its schedule.
Gold and silver saw volatility last week, falling from recent highs after hawkish comments from Federal Reserve officials dampened expectations of near-term rate cuts. “Expectations of a December rate cut dropped to 46 percent after hawkish Fed signals,” analysts said.
Despite short-term fluctuations, both metals are poised for strong annual performance. Central bank buying and ongoing safe-haven demand amid economic and geopolitical uncertainty continue to support bullion’s longer-term outlook, experts noted. (Source: IANS)
