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Gold Price Rollercoaster: Why Precious Metals Remain Volatile Amid Fed Uncertainty

Gold and silver prices experienced significant volatility throughout the week. The precious metals faced pressure from stronger-than-expected US economic data that reduced hopes for immediate Federal Reserve rate cuts. Despite the fluctuations, analysts maintain that both gold and silver remain in broader bullish trends. Market experts predict continued volatility with gold expected to trade between Rs 1,20,000 and Rs 1,24,000 in the near term.

Key Points: Gold Silver Prices Volatile Week Amid Fed Rate Cut Speculation

  • Gold prices fluctuated between Rs 1,21,691 and Rs 1,23,388 per 10 grams this week
  • Silver prices dropped Rs 3,804 per kilogram amid broader market correction
  • Strong US jobs data reduced expectations for Federal Reserve rate cuts in December
  • MCX gold futures fell 0.87% while silver contracts declined 2.17% on Friday
2 min read

Gold, silver prices remain volatile this week amid dynamic global cues

Gold and silver prices swung wildly this week as strong US jobs data dashed Fed rate cut hopes. Gold hit weekly high of Rs 1,23,388 before retreating amid dollar strength.

"Gold experienced a healthy correction this week but continues to maintain a strong bullish framework - Ponmudi R, CEO of Enrich Money"

New Delhi, Nov 22

Gold and silver prices remained volatile this week amid signs of some ease in global trade order, fading expectations of a December rate cut by the US Federal Reserve and a stronger dollar index.

According to the Indian Bullion and Jewellers Association (IBJA), the price of 24-carat gold closed at Rs 1,22,653 per 10 grams on Friday, up Rs 221 against Monday's price of Rs 1,22,432 per 10 grams. Meanwhile, the price touched a week-low at Rs 1,21,691 on Tuesday and a high at Rs 1,23,388 per 10 grams on Wednesday.

Silver price ended the week at Rs 1,51,129 per kilogram, down Rs 3,804 from Monday's price of Rs 1,54,933 per 10 grams.

"Gold experienced a healthy correction this week but continues to maintain a strong bullish framework. COMEX gold closed at $4,079.5, while MCX gold settled around Rs 1,24,191, finding support precisely on the multi-month rising trendline," said Ponmudi R, CEO of Enrich Money.

"Silver witnessed a sharp yet healthy correction this week across both COMEX and MCX, but the broader uptrend remains firmly intact," Ponmudi added.

Meanwhile, gold prices saw a massive dip on Friday amid stronger-than-expected US September jobs data, which faded expectations of a near-term Federal Reserve rate cut.

Gold futures contracts on the Multi-Commodity Exchange (MCX) were firmly in negative territory (as of 12.43 pm) as the December futures dropped by Rs 1,067, or 0.87 per cent, to Rs 1,21,697 per 10 grams.

MCX Silver December contracts dipped 2.17 per cent or Rs 3,349 to Rs 1,50,802 per kg. At the same time, the price of 10 grams of 24-carat gold was at Rs 1,22,149, down from Rs 1,22,881 on Thursday, according to IBJA.

"Gold traded highly volatile as Comex gold fell 1 per cent to $4,035, down by $41, while MCX gold rose Rs 300 due to a sharp rupee depreciation of nearly 1 per cent from 88.70 to 89.60," said Jateen Trivedi of LKP Securities.

Gold is expected to remain volatile within a range of Rs 1,20,000-Rs 1,24,000, he added.

- IANS

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Reader Comments

R
Rohit P
As someone who invests in gold ETFs, this volatility is actually good for trading opportunities. The ₹1,20,000-₹1,24,000 range mentioned by the expert gives clear levels for entry and exit. Silver correction seems healthy for long-term investors.
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Sarah B
Living in India but working for a US company, I can see how the rupee depreciation affects gold prices here. When dollar strengthens, gold becomes more expensive for Indian buyers even if international prices drop. Complex dynamics!
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Arjun K
Gold at ₹1.22 lakh per 10gm is still too expensive for middle-class families. Our parents bought gold at ₹5,000-10,000 per 10gm in their time. Now even small pieces are out of reach for many households during festivals and weddings.
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Kavya N
The silver correction of ₹3,800 per kg is quite significant! Might be a good time to buy some silver coins for investment. In Indian tradition, both gold and silver are considered auspicious investments. 🪙
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Michael C
While the analysis is comprehensive, I wish the article had more practical advice for retail investors. How should common people navigate this volatility? Systematic investment in gold funds might be better than timing the market.
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Vikram M

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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