Gold and Silver Prices Fall as Investors Eye US Payroll Data

Gold and silver prices declined as traders took profits ahead of the US non-farm payrolls report. The data will inform the Fed's rate decisions, affecting precious metals. While gold prices fell, silver's role as an industrial metal is tied to demand shifts from clean energy initiatives.

On Tuesday, gold and silver prices saw a downturn in the futures trade. The decline came as traders booked profits while adopting a cautious outlook ahead of the much-anticipated US non-farm payrolls report. Analysts predict that the payrolls data will be crucial in determining the future course of the US Federal Reserve's interest rates.

Gold futures for February delivery on the Multi Commodity Exchange (MCX) decreased by Rs 341 to Rs 1,33,789 per 10 grams, while silver futures also faced selling pressure, dropping by Rs 1,189 to Rs 1,96,712 per kilogram in March 2026 contracts. In the international markets, Comex gold futures snapped a three-day winning streak, falling by USD 37.8 to USD 4,297.4 per ounce. Meanwhile, Comex silver futures for the March 2026 contract slipped by USD 1.5 to USD 62.11 per ounce.

Market sentiments are closely tied to upcoming data on US retail sales and manufacturing, as well as November's inflation numbers. While some expectations persist for future rate cuts in 2026, current geopolitical tensions easing with potential Russia-Ukraine peace talks are capping bullish trends in bullion prices. The shifting dynamics around silver, driven by its industrial demand, particularly from India's clean-energy initiatives, add another layer of intrigue for investors.

(With inputs from agencies.)