Gold extends losses, silver falls as safe-haven demand eases globally
Gold and silver prices tumbled sharply in the futures market on Monday, mirroring a global decline in precious metals as optimism over a potential US-China trade agreement and a firmer US dollar reduced demand for safe-haven assets.
On the Multi Commodity Exchange (MCX), gold futures for December delivery fell by ₹1,546, or 1.25%, to ₹1,21,905 per 10 grams with a business turnover of 12,428 lots.
The yellow metal had already lost ₹3,557, or 2.8%, during the previous holiday-shortened week.
“Gold prices continue to decline as safe-haven demand weakens amid optimism over a potential US-China trade deal and a stronger US dollar,” said Darshan Desai, CEO of Aspect Bullion & Refinery.
The US dollar index, which tracks the greenback against six major currencies, edged up 0.03% to 98.98, further pressuring gold prices.
Silver also witnessed a steep fall in the domestic market. Silver futures for December delivery dropped by ₹1,964, or 1.33%, to ₹1,45,506 per kilogram on the MCX, with 20,367 lots traded. The metal had already fallen ₹9,134, or 5.83%, over the previous week.
In the international market, Comex gold futures for December delivery declined USD 61.69, or 1.49%, to USD 4,076.11 per ounce on Monday, while Comex silver was down 1.44% at USD 47.88 per ounce.
“Gold prices fell to around USD 4,070 per ounce, extending Friday’s decline, as progress in US-China trade talks dampened demand for safe-haven assets,” said Jigar Trivedi, Senior Research Analyst at Reliance Securities.
After two days of discussions in Malaysia, top negotiators from Washington and Beijing reached a preliminary consensus on key issues, including export controls, fentanyl trafficking, agricultural trade, and shipping levies. The breakthrough has set the stage for US President Donald Trump and Chinese President Xi Jinping to finalise a deal during their meeting in South Korea later this week, Trivedi added.
Desai of Aspect Bullion & Refinery cautioned investors that gold may see short-term volatility, with potential for further declines if the trade deal progresses or if the dollar strengthens.
Meanwhile, traders are eyeing key central bank policy meetings this week. The US Federal Reserve is expected to cut interest rates by 25 basis points following softer inflation data, while the European Central Bank and Bank of Japan are likely to maintain their current policy stance.
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Precious metals also behave same as geo politics. It has no known scientific basis. Fancy pricing. Anything coming from Africa, then it is manipulated to keep it very low.
Precious metals also behave same as geo politics. It has no known scientific basis. Fancy pricing.