Gold and silver prices have dropped sharply this week, offering some relief to buyers ahead of India's wedding season. On the Multi Commodity Exchange (MCX), gold futures for December delivery ended Friday at ₹1,36,750 per 10 grams, up ₹525 or 0.39% from the previous session. Silver contracts also recovered, gaining ₹234 or 0.13% to ₹1,76,543 per kg. Despite Friday's rebound, both metals remained down over 4% for the week, pressured by a stronger US dollar, rising bond yields, and concerns over US interest-rate policy.
The sell-off followed a hotter-than-expected US inflation reading for October, which strengthened expectations of a December Federal Reserve rate hike. Higher interest rates typically weigh on non-yielding assets like gold and silver. Ponmudi R, CEO of Enrich Money, noted that MCX gold closed near ₹1,36,705 after breaking below key support levels. Immediate resistance is now at ₹1,37,500, ₹1,38,300, with downside support at ₹1,35,066, ₹1,34,000.
Rajeev Sharan, Head of Research at Brickwork Ratings, attributed the pullback to a stronger US dollar and rising bond yields. He expects gold to trade in the $3,850, $4,000 range in the near term, with wedding demand in India and steady central bank purchases potentially limiting further declines. For silver, Ponmudi said MCX silver ended the week near ₹1,76,309, with immediate resistance at ₹1,78,000, ₹1,80,000 and support at ₹1,72,000, ₹1,70,000.
The coming week will be crucial for precious metals, with the release of the Federal Reserve meeting minutes and Nvidia's earnings on investors' radar. The Fed's policy signals, the dollar's movement, and how prices respond to key technical levels will determine whether the current correction offers a buying opportunity or marks the start of a deeper decline.