New Delhi, Nov 20: Gold and silver prices declined in the futures trade on Thursday as investors trimmed their positions after the US Federal Reserve's latest meeting minutes signalled continued caution over rate cuts.
Gold Drops ₹511; Silver Down ₹411
On the Multi Commodity Exchange (MCX), gold futures for December delivery declined by Rs 511, or 0.42 per cent, to Rs 1,22,540 per 10 grams in a business turnover of 10,456 lots.
Silver futures were also under pressure, with the white metal for December delivery falling by Rs 411, or 0.26 per cent, to Rs 1,54,696 per kg in 12,309 lots.
Fed Minutes Signal Caution; Dollar Strengthens
"Gold prices pared gains after the release of the Federal Reserve's latest meeting minutes, with market participants keeping an eye on update regarding Japan and economic data points which is again being delayed," Manav Modi, Analyst - Precious Metal -Research, Motilal Oswal Financial Services, said.
Federal Reserve officials, during the October meeting, were divided over cutting interest rates, minutes released on Wednesday showed. Fed Chair Jerome Powell reinforced a cautious tone, stating that a December rate cut is not a "foregone conclusion".
Global Gold and Silver Also Decline
On the global front, Comex gold futures for December delivery slipped by USD 23.54, or 0.58 per cent, to USD 4,059.26 per ounce.
Manav Modi noted that a sharply lower US trade deficit and reduced rate-cut expectations have strengthened the Dollar Index back toward the 100 mark, limiting bullion's upside.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading flat at 100.20.
Comex silver futures for December delivery fell by 0.57 per cent to USD 50.56 per ounce.
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"Markets uncertainty intensified after the US Bureau of Labor Statistics unexpectedly cancelled the October employment report, sharply reducing December rate-cut odds from 50 per cent to 30 per cent and injecting further volatility into the macro landscape," Modi added.
(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)
