Dollar Surge Dims Glitter of Gold and Silver

Gold and silver prices dipped in domestic futures trading due to a robust dollar and easing US-China trade tensions. The drop in safe-haven appeal was observed on the Multi Commodity Exchange, with significant declines in gold and silver future contracts. The global markets also mirrored this trend.

Gold and silver prices declined on Tuesday in domestic futures trading, influenced by a strong dollar and reduced trade tensions between the US and China, which weakened the metals' safe-haven appeal. This drop was evident on the Multi Commodity Exchange (MCX), marking a significant downturn in precious metal futures.

Gold futures for December delivery on the MCX reduced by Rs 836, translating to a 0.69% decrease, reaching Rs 1,20,573 per 10 grams in a business turnover of 13,332 lots. Silver futures also faced losses, plummeting by Rs 1,558, or 1.05%, to Rs 1,46,200 per kilogram in 20,939 lots.

Globally, the trend followed suit with Comex gold futures trading lower due to a firm dollar and diminished expectations for further Federal Reserve rate cuts. The looming absence of key macroeconomic data, due to the US government shutdown, exacerbates market uncertainties, further impacting bullion's allure.

(With inputs from agencies.)