Gold prices slump Rs 3,000/ 10gm, silver down Rs 9,300/ kg from all-time highs: Good time to buy precious metals?
As after the Trump win, the economic policies remain uncertain and there is a higher chance of inflation coming to fore again, fearing lower pace of rate cut going ahead, precious metal prices are seeing a pullback.
Gold prices in Monday's trade were weak mirroring global gold price movement. On the MCX, gold December futures traded down by nearly Rs 500 or 0.62 per cent at Rs 76,795, while at the day's low it hit levels of Rs 76,698 per 10 gm.
Gold trades subdued in a data-packed week
As a slew of data, both in the domestic and US markets, are set to be unveiled including CPI and IIP numbers together with PPI and jobless claims, retail sales data in the US, gold is trading week.
Also, a number of Fed officials are slated to speak this week after the latest round of 0.25 per cent rate cut.
Uncertainty continues to reel gold prices down
Lesser aggressive future rate cut anticipation bodes negatively for gold
Even after the 2024 presidential election, there remains much uncertainty about the economy's direction and Fed policy. Tariffs and a tax policy appear to be on the agenda in the next administration, which could lead to higher inflation and thus higher rates.
As a result, the market expects a slower pace of future interest rate decreases, which has weighed on the precious metals pace, noted Dr. Renisha Chainani, Head Research - Augmont - Gold For All.