Gold and silver prices in the global markets fell significantly on Friday as investor sentiment weakened following a series of hawkish comments from US Federal Reserve officials. The remarks dampened expectations of a possible interest-rate cut in December, pushing traders to reassess their positions in precious metals.
The decline was further reinforced by the resolution of the US government shutdown. With the shutdown ending, concerns about economic disruption eased, reducing the safe-haven appeal that had recently supported bullion prices.
Market analysts noted that the combination of firmer rate-cut expectations being pushed back and a fading flight-to-safety trade weighed heavily on both gold and silver through the session. Since these metals offer no yield, higher-for-longer interest rates make them less attractive compared with interest-bearing assets.
Experts believe that the current softness in bullion may persist in the near term. Unless there is a renewed surge in risk aversion or a clear shift in the Federal Reserve’s policy tone, gold and silver could remain under pressure as investors track upcoming US economic data and policy statements.
India
The price trend in India for gold and silver showed a mixed but steady trend on Saturday, November 15, with both metals holding near recent highs despite a brief phase of consolidation. Domestic prices reflected the influence of global market cues, currency movements and the easing of festival-driven demand.
Gold prices remained firm, with 24-carat rates across major cities hovering around Rs 1.27 lakh per 10 grams. The metal has been under mild pressure after US Federal Reserve officials signalled a cautious stance on cutting interest rates. Their comments strengthened the US dollar, reducing the appeal of non-interest-bearing assets like gold. Even so, domestic demand from weddings and jewellery buyers kept prices supported, and local premiums remained intact in several markets.
Silver prices softened slightly after their sharp rise in recent weeks. Rates on November 15 averaged around Rs 1.73–1.75 lakh per kilogram in key cities, including Chennai. The marginal dip followed a surge during the festive season, when industrial offtake and retail buying pushed silver to record levels. As festival demand tapered, premiums eased, but the broader uptrend stayed in place due to strong global industrial demand, particularly from electronics and clean-energy sectors.
Market analysts noted that both metals are in a consolidation phase after significant gains. Gold is trading just below its recent peak and could resume its upward move if global uncertainty persists or if the dollar weakens. Silver continues to show higher volatility and remains sensitive to shifts in industrial demand and speculative activity.
For buyers, the current level represents a stable but elevated price zone. Jewellery demand is expected to remain steady through the ongoing wedding season, while investors may prefer to wait for clearer global signals before making large purchases. The next direction for both metals will likely be shaped by US economic data, upcoming central bank communication and any movement in the rupee against the dollar.
Key drivers behind global price trend
The precious metals lost ground as investors reassessed the outlook for US monetary policy. Since bullion offers no yield, expectations of higher-for-longer interest rates tend to reduce its appeal. Recent remarks from Federal Reserve officials, which played down the likelihood of a December rate cut, added to the pressure and weakened sentiment across precious metals. The prolonged US government shutdown had earlier created gaps in key economic data, making the policy path harder to gauge and pushing markets to temper their rate-cut expectations even further.
With the shutdown now resolved, the urgency for safe-haven assets has eased. During the weeks of political uncertainty, delayed economic indicators and disruptions in government services had driven investors toward gold. As conditions stabilise, however, capital is gradually shifting back into risk assets, reducing demand for both gold and silver.
Broader market movements have also influenced bullion. Episodes of risk aversion in equity and commodity markets have triggered liquidations across asset classes, and analysts noted that even traditional safe-havens were sold during one such risk-off spell. A stronger US dollar and elevated treasury yields have added to the downward pressure by making gold more expensive for overseas buyers.
Analysts caution that the weakness may persist in the near term. Gold has so far held above the crucial $4,000-per-ounce mark, but Friday’s decline suggests that this support could be tested. Upcoming US inflation, employment and growth data will play a critical role in shaping rate expectations and, by extension, the trajectory for precious metals. Softer economic indicators could revive hopes of policy easing and lend support to bullion, while strong data would likely reinforce downside pressure.
Silver faces an additional layer of uncertainty due to its industrial use. A softer global growth outlook may curb demand, although renewed stimulus expectations could provide some offset. While long-term structural drivers for gold and silver — including central-bank buying and inflation concerns—remain intact, the near-term outlook appears volatile, with tactical positioning currently tilted against bullion.