Gold prices in India are expected to be under pressure as long as the dollar index continues to strengthen. Amidst Trump's win and the US Federal Reserve's soft 25 bps cut, gold prices internationally declined sharply with spot gold and US gold futures down by more than 2%. In India, both gold and silver prices also faced the brunt. The next key driving factor is key macroeconomic data such as inflation ahead in the week.
Gold Prices Outlook On November 12, 2024:
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said that gold prices are trading lower at ₹79,800 per 10 grams, with COMEX down at $2,673, slipping from Friday's close of $2,685 as the strengthening dollar index exerts pressure on the yellow metal.
He further added that the rise in US bond prices following Trump's election victory is contributing to the corrective trend in bullion. This trend is likely to persist as long as gold trades below the critical $2,750 resistance level.
"On COMEX, $2,600 serves as a significant support, while in MCX, the range of ₹74,500-₹75,000 is expected to provide overall support," the analyst said.
Gold Prices In India:
In India, gold prices slipped by Rs 45 to Rs 6,000 on November 11. The latest 24K gold price is Rs 7,87,600 for 100 grams and Rs 78,760 for 10 grams. While 22K gold prices are at Rs 7,22,000 for 100 grams and Rs 72,200 for 10 grams. Further, gold prices are at Rs 5,90,700 in 100 grams of 18K, and at Rs 59,070 in 10 grams.
Silver Prices In India:
Just like gold, the price of silver also declined sharply. On Monday, 1kg silver prices in India dipped by Rs 1,000 to Rs 93,000 1kg. However, 1kg silver prices continued to be at Rs 1,02,000 in cities like Chennai, Kerala and Hyderabad.
MCX Gold, Silver Prices:
Further, on November 11, MCX gold futures with December expiry, declined by Rs 1,916 or 2.48% to end at Rs 75,356 per 10 grams. While MCX silver prices with December expiry, dropped by a huge Rs 2,170 or 2.4% to close at Rs 89,099 in 1kg.
Spot Gold, US Gold Futures:
As per a Reuters report, gold prices slipped more than 2% on Monday, weighed down by the greenback's continued rise and the broader implications of Donald Trump's victory on fiscal policy and interest rate cuts. Spot gold fell 2.6% to $2,613.51 per ounce, as of 12:17 p.m. ET (1716 GMT). U.S. gold futures fell 2.8% to $2,620.20.
Dollar Index:
Meanwhile, The US dollar index gained to hit its highest level since early July, to 105.5 on Monday. Also, it has extended its winning streak for six consecutive weeks. The Trading Economic data stated that the 'Trump trades" remain prevalent as traders anticipate that Donald Trump's policies on taxation and deregulation will favour businesses and likely drive inflation higher, limiting the Fed's capacity to lower interest rates.
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