Gold prices decline by Rs 3,400/10 gm this week, Silver 3,200/kg

NEW DELHI: Gold December futures on Multi Commodity Exchange (MCX) declined 0.83% or Rs 615 to Rs 72,867/10 gram on Thursday while silver December futures traded at Rs 88,032/kg, declining 1.31% or Rs 1,165. The yellow metal's prices this week fell by Rs 3,400/10 grams while silver prices reduced Rs 3,200/kg.
Gold prices have declined by Rs 3,400/10 grams this week, with silver experiencing a reduction of Rs 3,200/kg during the same interval.
Both the metals on Wednesday showed weakness in domestic and international markets with Gold December futures settling at Rs 74,482 per 10 grams after declining by 0.56%, while silver December futures concluded at Rs 89,197 per kilogram, down by 0.15%.
The decline in gold and silver continued due to the strengthening US dollar and rising cryptocurrency values. US 10-year bond yields surpassed 4.40%, causing investors to move away from precious metals.
The dollar index exceeded 106 points, reaching near one-year highs following Donald Trump's US Presidential election victory. The US Dollar Index, DXY, currently stands near 106.61, showing an increase of 0.13 or 0.12%.
Bitcoin surpassed $93,000 per coin, reaching a new milestone. The current enthusiasm for cryptocurrencies is reducing investment interest in gold and silver.
Wednesday's US CPI inflation data aligned with expectations, showing 2.6% year-on-year for October, up from 2.4%. Core CPI met projections, with inflation rising moderately but remaining at acceptable levels, not affecting US Fed monetary policy decisions.
"We expect gold and silver prices to remain to remain weak amid strength in the dollar index, US bond yields and crypto rally and could test $2,550 and $30.00 per troy ounce levels respectively in the short term," said Manoj Kumar Jain of Prithvifinmart Commodity Research.
He further said that gold has support at Rs 74,180-73,850 and resistance at Rs 74,720-75,000 at MCX while Silver has support at Rs 88,500-87,750 and resistance at Rs 90,000-90,650. He advises avoiding gold and silver trading today, waiting for market stabilisation.