Gold Prices Plunge Amid Strong Dollar and US Economic Uncertainty

Gold prices saw a significant decline due to a strong dollar and caution ahead of US economic data releases. December gold futures on MCX fell by Rs 1,477, while silver futures also dropped. Global bullion prices faced pressure with the dollar index remaining high, impacting investor sentiment.

Gold prices experienced a sharp decline on Monday, influenced by weak global trends and a strong dollar. This drop comes as investors exhibit caution ahead of key US macroeconomic data, which is affecting appetite for the precious metal.

On the Multi Commodity Exchange, gold futures for December saw a notable decrease of Rs 1,477, or 1.19%, settling at Rs 1,22,714 per 10 grams amid a business turnover of 9,400 lots. Similarly, silver futures faced selling pressure, falling by Rs 1,176, or 0.76%, to Rs 1,52,975 per kilogram.

The global bullion market is witnessing downward pressure as the dollar index remains elevated above the 100 mark, its highest in nearly six months, thereby limiting the growth potential for precious metals. Expert opinions indicate that expectations have shifted towards a December rate cut following recent signals from the New York Fed, impacting market pricing and closely tying it to upcoming economic indicators relevant to the Federal Reserve's policy outlook.

(With inputs from agencies.)