Perspective on Gold and Silver from Ashish Rajodiya, Head of Commodities, PL Capital
Below the Perspective on Gold and Silver from Ashish Rajodiya, Head of Commodities, PL Capital
“Gold extended its slide, with spot gold down 2.4% at $3,890 an ounce and silver down 2.8% at $50.19. On MCX, December gold fell Rs 3,112 or 2.23% to Rs1,36,604 per 10 grams, and December silver dropped Rs 5,412 or 2.93% to Rs1,79,113 per kg. A weaker rupee, at 93.99 per dollar, cushioned the fall in domestic prices slightly.
The pressure comes from Tuesday's hotter-than-expected US inflation, which has pushed the dollar to near its highest level since April 2025 and left a December Fed hike almost fully priced, at about 87% for 25 bp and 13% for 50 bp. Today's jobless claims added to this: initial claims rose to 200,000, above the 195,000 expected but still very low, which shows layoffs remain contained and leaves the Fed room to tighten. Higher yields and a firmer dollar raise the cost of holding metals that pay no interest, and investment demand has been weak.
US producer prices on Friday are the next test. A softer reading would ease hike fears and let both metals steady, while another hot print could extend the fall.”
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