Why Did Gold and Silver Prices Decline on MCX Today?
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Synopsis
Gold and silver prices have seen a notable decline on the MCX as traders secure profits following recent increases. The market remains volatile ahead of the US Federal Reserve's anticipated policy announcements. Will these trends continue as investors await clarity on interest rates?
Key Takeaways
- Gold and silver prices fell on MCX as traders took profits.
- Weak demand and a declining US dollar contributed to this trend.
- Upcoming Federal Reserve announcements may influence future market movements.
- Gold futures are currently hovering around Rs 1,30,300–Rs 1,30,400.
- Silver futures have decreased to Rs 1,81,600 per kg.
Mumbai, December 8 (NationPress) Gold and silver prices experienced a decline during early trading on the Multi Commodity Exchange (MCX) this Monday morning, as traders opted to secure profits following a recent price surge.
This drop was observed alongside diminished demand in the spot market; however, losses were somewhat contained due to a weakening US dollar, with investors anticipating a potential rate cut announcement from the US Federal Reserve later this week.
In the early trading session, MCX gold February futures were recorded at Rs 1,30,409 per 10 grams, reflecting a downturn of 0.04 percent. Experts noted, “MCX Gold remains within a rising channel pattern and is currently fluctuating around the Rs 1,30,300–Rs 1,30,400 range, having faced resistance near Rs 1,32,250.”
Meanwhile, MCX silver March futures saw a decline of 1 percent, settling at Rs 1,81,600 per kg.
This slight retreat follows substantial gains from the prior session, where gold futures rose by 0.30 percent to close at Rs 1,30,462 per 10 grams, and silver futures surged nearly 3 percent, closing at Rs 1,83,408 per kg after reaching a historic high of Rs 1,85,234 during the day.
The market for these precious metals continues to exhibit considerable volatility as investors await the results from the upcoming US Federal Open Market Committee (FOMC) meeting scheduled for December 10.
The US central bank is set to unveil its policy decision amidst conflicting economic indicators.
The Personal Consumption Expenditures (PCE) price index, which the Fed considers a key measure of inflation, saw an increase of 0.3 percent in both August and September.
On an annual basis, the index rose to 2.8 percent in September from 2.7 percent in August, indicating that inflation remains slightly elevated.
Concurrently, the growing anticipation of an interest rate cut has applied pressure on the US dollar, with the dollar index hovering around a six-week low of 98.76, a level last observed on December 4.
A weaker dollar renders gold less expensive for buyers utilizing other currencies, thereby helping to mitigate the downward trend for the yellow metal.
Analysts anticipate that the gold and silver markets will likely remain turbulent until the Fed clarifies its interest rate trajectory.
Point of View
We recognize the inherent volatility in the gold and silver markets. Current trends underscore the importance of remaining vigilant as traders navigate profit-taking amidst shifting economic indicators. Our commitment is to provide insightful analysis that empowers our readers to make informed decisions.
NationPress
09/12/2025
Frequently Asked Questions
What caused the decline in gold and silver prices?
The decline in gold and silver prices was primarily due to traders booking profits after a recent rally, alongside weak demand in the spot market.
How did the US dollar impact precious metal prices?
A weaker US dollar makes gold and silver cheaper for buyers using other currencies, which helps limit the downside for these metals.
What are the expectations from the upcoming FOMC meeting?
Investors are awaiting clarity on the Federal Reserve's interest rate path, which could significantly impact gold and silver prices.
