Gold and silver prices in India experienced a sharp drop on Friday, Oct 30, following a steep decline in international bullion markets.
The sell-off was triggered by stronger-than-expected US inflation metrics, which reignited investor expectations for an additional interest rate hike by the US Federal Reserve later this year.
On the Multi Commodity Exchange (MCX), December gold futures fell by Rs 1,392, or 0.98%, to settle around Rs 1,41,204 per 10 grams after touching an intraday low of Rs 1,41,177.
Silver witnessed a heavier correction, slumping Rs 5,312, or 2.80%, to Rs 1,84,141 per kg, having touched a low of Rs 1,84,050 during the session. In global markets, spot gold fell 0.5% to $4,000.54 per ounce, while US gold futures dropped to $4,010.10, putting the metal on track for a second straight monthly decline.
“MCX gold prices remain under pressure as persistent US inflation, elevated oil prices, and resilient growth reinforce expectations of a December Fed rate hike,” noted Pinky Yadav, Commodity Fundamental Analyst at Choice Broking.
US PCE inflation for September accelerated by 0.5%, its fastest monthly rise since March, elevating Dec rate-hike bets near 75%. Because higher interest rates raise the opportunity cost of holding non-yielding assets, gold lost ground.
From a technical perspective, Ponmudi R, CEO of Enrich Money, highlighted immediate support in the Rs 1,40,000–1,41,000 range. A breakdown below this level could extend losses toward Rs 1,37,500, while a recovery above Rs 1,43,000 is required to restore upside momentum.
