Gold Dips While Silver Shines Amid Market Volatility

Gold futures experienced a drop, influenced by subdued global trends and minimal demand in spot markets. Meanwhile, silver futures saw a recovery, spurred by international demand and expectations of Federal Reserve interest rate cuts. Market analysts highlight how this uncertainty impacts both commodities as investors react to economic indicators.

Gold prices experienced a significant dip in futures trading on Thursday, driven by subdued global trends and low demand in spot markets. On the Multi Commodity Exchange, gold futures for December delivery fell by Rs 198 to Rs 1,25,733 per 10 grams, with a total of 6,075 lots changing hands.

Conversely, silver futures reversed their initial downturn, with the December contract soaring by Rs 2,069 to Rs 1,63,341 per kilogram in 6,965 lots. Analysts attribute this rally to expectations of a Federal Reserve rate cut, coupled with stronger than anticipated US economic data.

Gold futures on Comex also declined, losing USD 11.4 to settle at USD 4,153.8 per ounce. Despite this setback, the prices remained near a two-week high as investors factored in potential monetary policy changes. Renisha Chainani from Augmont emphasized the connection between the uneven economic data and the trajectory of precious metal investments.

(With inputs from agencies.)