Gold and Silver Forecast Today: MCX Yellow Metal Rates Slides Below Rs 74,000/10 Grams

The bullion market is witnessing a continued decline in prices. Both domestic and international markets are experiencing this trend. On Thursday, gold prices dropped in early trading on the Multi Commodity Exchange (MCX). Similarly, Comex is also seeing a decrease in gold and silver prices. This decline is largely due to the rising dollar index and US bond yields.

Gold prices have seen a notable drop on the MCX. The December futures for gold fell by approximately ₹600, bringing the price below ₹73,900 per 10 grams. This is significantly lower than the all-time high of ₹79,775 per 10 grams, making it about ₹6,000 cheaper than its peak. Despite this, Manav Modi from Motilal Oswal Financial Services predicts a long-term target of ₹81,000 per 10 grams for gold. He also suggests that prices might dip to ₹73,000.

In international markets, gold and silver are also experiencing significant corrections. On Comex, gold has decreased to $2,567 an ounce, marking a drop of nearly three-quarters of a percent. Silver has fallen more than one and a quarter percent, now priced at $30 an ounce.

Silver prices have also sharply declined on the MCX, dropping by around ₹1,100 to trade at ₹88,100 per kg. According to Manav Modi, there could be a long-term increase in silver prices. He forecasts that it might reach ₹125,000 per kg by the end of the new year.

The continuous strength of the dollar and rising bond yields are exerting pressure on Comex gold prices, which have fallen for four consecutive days. The dollar index is at its highest in seven months. Additionally, US bond yields have risen above 4.47%. Inflation figures have increased as expected, leading to speculation that the Federal Reserve might cut interest rates in its next policy meeting.

Currently, about 82% of traders anticipate an interest rate cut in December's policy meeting. This would mark the third consecutive reduction. Previously, only 58% of traders expected such a move. However, expectations have grown following recent economic data releases.

The ongoing correction in both domestic and international bullion markets highlights the influence of economic factors like currency strength and bond yields on commodity prices. As traders adjust their expectations based on these indicators, market dynamics continue to evolve.