Gold prices on the COMEX slipped below $4,000 per ounce on Thursday, reaching an intraday low of $3,973.80. Silver also saw a decline, hitting a low of $51.160 per ounce and nearing its 52-week low of $48.050. The drops came amid speculation of a US Federal Reserve rate hike in December and a stronger US dollar, which typically reduces the appeal of precious metals.
In India, the MCX gold rate fell by around ₹550 per 10 grams, trading at approximately ₹1,39,000 per 10 grams. Silver on the MCX dropped by over ₹1,700 per kg, trading below ₹1,83,000 per kg. Market experts are debating whether gold could soon fall to ₹1.25 lakh per 10 grams and silver to ₹1.50 lakh per kg.
Vikram Subburaj, CEO of Giottus.com, attributed the pressure on gold and silver to stronger-than-expected US inflation data, which has increased expectations of further Federal Reserve tightening. Anuj Gupta, a SEBI-registered market expert, predicted continued weakness in precious metals, suggesting that gold could test support levels as low as $3,400 to $3,350 per ounce if the current support at $3,800 breaks.
Gupta also noted that if silver breaks below $48 per ounce, it could drop to $42 or even $40 per ounce. Converting these levels to Indian rupees, he warned that gold could fall to ₹1,30,000 or ₹1,20,000 per 10 grams, while silver might approach ₹1,55,000 or ₹1,48,000 per kg.