Gold Price Today: Gold and Silver Prices Plummet as Strong Dollar and Fed's Stance Weigh Heavily

The precious metals market has been rocked by significant price drops in gold and silver, marking a continuous downward trend over the past three days. This substantial reduction in value is primarily driven by the solid performance of the US dollar and the anticipated delay in interest rate cuts by the US Federal Reserve. The impact of these macroeconomic factors has been felt across markets, from New York to Mumbai, causing considerable concern among investors and signaling a period of heightened volatility for these commodities.

Key Factors Behind the Decline

Experts attribute the turmoil in gold prices, observed from New York to Mumbai, to the US Central Bank Federal Reserve's potential delay in interest rate cuts and a surge in the Dollar Index. The changing dynamics of the US economy, coupled with diminishing tensions over tariffs and the Fed's cautious approach to monetary policy, are expected to reduce the demand for gold. A stronger dollar makes gold more expensive for holders of other currencies, thereby dampening its appeal as an investment. On top of that, higher interest rates or delays in rate cuts make non-yielding assets like gold less attractive compared to interest-bearing investments, contributing to the selling pressure.

Significant Drop in Gold Prices

The Multi Commodity Exchange (MCX) in India has reported a substantial fall in gold prices. As per data from 10:15 AM, gold prices saw a decline of ₹1,719, trading at ₹1,21,208 per ten grams. During the trading session, gold touched a day's low of ₹1,21,000, reflecting a sharp drop of ₹1,927. The yellow metal opened at ₹1,22,121, compared to its previous day's closing price of ₹1,22,927. This marks the third consecutive day of decline, with gold prices cumulatively falling by ₹5,751 during this period. Also, from its lifetime high, gold prices have now decreased by ₹11,294, indicating a significant correction in the market and a challenging period for gold investors.

Silver Prices Also Tumble

Silver prices on the Multi Commodity Exchange also experienced a sharp downturn. At 10:20 AM, silver was trading with a decline of ₹3,618, bringing its price down to ₹1,51,694. During the trading session, silver hit a day's low of ₹1,51,250, a fall of ₹4,062. Silver opened lower at ₹1,52,948, against its previous closing price of ₹1,55,312 per kilogram. Notably, just three days prior, silver prices stood at ₹1,62,470, meaning a total decline of ₹11,220 has occurred since then. From its lifetime high of ₹1,70,415 recorded a month ago, silver prices have now fallen by ₹19,165. Per kilogram, highlighting the considerable volatility and the extent of the market correction in the white metal.

Global Markets Reflect Similar Trends

The downward trend isn't confined to domestic markets; international gold and silver prices are also experiencing significant declines. On New York's Comex market, future gold was trading down by approximately $66 per ounce, settling at $4,009. 20, while gold spot prices also fell by $36. 17, trading at $4,008. 79 per ounce. Similarly, silver futures saw a 2. 61 percent drop, trading at $49. 37, while silver spot prices decreased by 1. 22 percent to $49. 60 per ounce. These global movements underscore the widespread impact of the current economic environment on precious metals, creating a challenging outlook for investors worldwide.

Expert Outlook on Gold's Future

Renisha Chainani, Head of Research at Augmont – Gold For All, commented. In a media report that gold is currently at a critical juncture. She stated that if gold prices remain above $4,150, a bullish trend is likely to continue. However, if prices stay below $4,050, a correction towards the previous low of around $3,900 could be observed. A failed attempt to breach above $4,200 per ounce this week has created a short-term bearish sentiment. Chainani further added that uncertainties surrounding the US economy, tariffs, and the Federal Reserve's next policy moves will. Likely keep price fluctuations limited in the short term, suggesting a period of cautious trading and potential sideways movement.

Silver's Volatility and Technical Levels

Regarding silver, Renisha Chainani highlighted its greater volatility. She noted that after touching resistance levels above $54, silver is experiencing renewed selling pressure. While silver has recovered from a sharp 16 percent decline last month, the market has formed a double top pattern. Chainani clarified that she would only adopt a fully negative stance if prices close below $50, while a level below $47 would confirm the double top and set a target of $44. This analysis suggests that silver's market remains highly uncertain, and investors should exercise caution given the technical indicators and ongoing market pressures that could lead to further price adjustments.