Mumbai, Nov 18 (NationPress) Gold and silver prices have experienced a significant decline in the domestic futures market on Tuesday morning as the optimism surrounding a potential rate cut by the US Federal Reserve in December has diminished, alongside a decrease in concerns regarding US tariffs.

This shift has diminished the attractiveness of safe-haven assets like bullion. During early trading, MCX Gold December futures were recorded at a 1.19 percent decrease, trading at Rs 1,21,466 per 10 grams.

MCX Silver December contracts also experienced a drop of 1.65 percent, settling at Rs 1,52,750 per kg.

Market analysts indicated, "Gold has support at $4000-3965 while encountering resistance at $4075-4110. For silver, support stands at $49.70-49.45, with resistance at $50.75-51.10."

In terms of INR, gold support is noted at Rs1,22,350-1,21,780, with resistance at Rs1,23,750-1,24,500. Silver shows support at Rs1,53,850-1,52,100, while resistance is at Rs1,56,540 and Rs1,57,280," they added.

On an international scale, gold prices have dropped for the fourth consecutive session on Tuesday.

The rise of a stronger US dollar and reduced expectations of a rate cut next month have continued to negatively impact gold prices.

The dollar index climbed to 99.59, which makes gold more expensive for buyers using other currencies.

As gold is priced in US dollars, a stronger dollar means higher prices for gold, leading to decreased demand.

The recent US government shutdown, which lasted a historic 43 days, had postponed the release of vital economic data, leading to uncertainty regarding the status of the world’s largest economy.

Now that the shutdown has concluded, focus is shifting to significant data releases expected this week, including the September nonfarm payrolls report set for Thursday.

These figures are crucial in shaping expectations for the US Federal Reserve's next decisions regarding interest rates.

At the same time, Fed officials are sending mixed signals regarding future monetary policy, contributing to further market uncertainty.

With no major positive triggers in the recent days, bulls are cautious, particularly with both metals still trading at historically elevated levels.

Analysts stated, "Traders are now looking forward to a new set of US economic data later this week. Meanwhile, a stronger US Dollar Index and slightly elevated 10-year Treasury yields are applying additional pressure on precious metals."