CHENNAI: Global gold prices softened on Tuesday (November 18), as the metal slipped to around US$4,033 an ounce, marking one of its weaker levels in over a week. The decline was driven primarily by a stronger US dollar and fading expectations of an early Federal Reserve rate cut. With yields staying firm and traders scaling back bets on monetary easing, gold lost some of its shine as a safe-haven asset. The movement was not dramatic, but clearly reflected a more cautious global mood, with analysts noting that the metal may remain range-bound unless there is a meaningful shift in macro signals.
The pressure overseas spilled into the Indian market as well, where gold prices eased across purity levels. Rates for 24-carat gold fell to about Rs 12,366 per gram, while 22-carat and 18-carat prices also registered declines. Major cities such as Delhi, Mumbai, Kolkata, Bengaluru and Chennai reported similar reductions, with slight variations depending on local premiums and demand patterns. In Chennai, for instance, 24-carat gold hovered near Rs 12,437 per gram, while other metros held close to national averages.
The moderation in domestic prices mirrors the global trend but is also shaped by soft jewellery demand following recent spikes. Investors and traders appear to be waiting for clearer signals from upcoming US economic data, which could influence both the dollar and interest-rate expectations. Unless fresh geopolitical or market stress emerges, gold is likely to stay subdued in the near term, with domestic prices expected to move largely in line with global cues.
Silver followed a similar path, easing in line with the broader retreat in safe-haven assets. The sentiment across global markets remained cautious, and analysts noted that both metals may stay range-bound unless there is a decisive shift in monetary cues or a fresh wave of risk aversion.
Silver too weakened in domestic trade, tracking the global trend, and moved lower across key hubs as traders turned cautious and demand tapered after recent firming.
The downshift in both metals is largely tied to global rate expectations, with the reduced likelihood of near-term easing in the US keeping pressure on non-yielding assets. Domestic buying has also been subdued, adding little support to prices despite seasonal wedding demand. As markets await the next round of US data releases, gold and silver are expected to take their cues from global currency movements and interest-rate signals, with any strong rebound likely dependent on a reversal in dollar strength or a fresh bout of geopolitical unease.