Gold and Silver Hit by US-China Trade Optimism

Gold and silver saw significant declines in the futures market, influenced by optimism over a US-China trade deal and a strong dollar. Gold futures fell on both the MCX and the global stage, with silver following a similar trend. Investors are warned about potential short-term volatility.

Gold and silver prices slumped on Monday as optimism about a potential trade agreement between the US and China, coupled with a robust dollar, diminished the appeal of these safe-haven assets. The downturn was observed in both domestic and international futures markets.

On India's Multi Commodity Exchange (MCX), gold futures for December saw a drop of Rs 1,546, marking a 1.25% decline, while silver futures for December delivery decreased by Rs 1,964. Likewise, comex gold futures internationally declined by USD 61.69 to USD 4,076.11 per ounce.

Analysts caution investors to brace for short-term volatility. Developments in trade talks, coupled with upcoming central bank decisions, could further influence market dynamics. A Federal Reserve rate cut is anticipated, with other central banks likely maintaining their current policies.

(With inputs from agencies.)