Gold, silver futures slide for 3rd day as Fed rate cut bets wane

New Delhi: Gold and silver prices fell sharply in futures trade on Tuesday, extending their losing streak for the third consecutive day as fading hopes of a interest rate cut by the US Federal Reserve in December weighed on the investor sentiment.

On the Multi Commodity Exchange (MCX), gold futures for December contract plunged Rs 1,807, or 1.47 per cent, to Rs 1,21,120 per 10 grams.

Similarly, the February 2026 contract slumped by Rs 1,833, or 1.47 per cent, to Rs 1,22,841 per 10 grams.

Silver futures also followed suit, with the December contract plummeting by Rs 3,660, or 2.36 per cent, to Rs 1,51,652 per kilogram while the March 2026 contract tanked by Rs 3,368, or 2.13 per cent, to Rs 1,54,557 per kg.

"Gold and silver extended losses as expectations of a December US rate cut continued to diminish. With no major positive fundamental triggers in recent days, bulls remain hesitant, especially with both metals still trading at historically high levels," Rahul Kalantri, Vice-President of Commodities, Mehta Equities Ltd, said.

In the international markets, Comex gold futures for December delivery declined $65, or 1.60 per cent, to $4,009.5 per ounce, marking the fourth straight session of losses.

In the past four sessions, the yellow metal has dropped by $204.1, or 4.84 per cent, from $4,213.6 an ounce recorded on November 12.

"Gold prices fell to around $4,010 per ounce, marking a fourth consecutive session of losses amid dwindling expectations for a US interest rate cut as investors await the release of delayed US economic reports this week," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

He noted that the lack of macroeconomic data over the past six weeks, coupled with hawkish remarks from several Fed officials, has diminished hopes for a rate cut in December.

Federal Reserve Vice Chair Philip Jefferson on Monday cautioned that the Fed should proceed "slowly" with further rate reductions, acknowledging that risks to employment have increased even as inflationary pressure eased.

Comex silver futures for December delivery declined 2.38 per cent to $ 49.50 an ounce in the overseas markets. It had closed at $50.71 per ounce on Monday.

Meanwhile, on the domestic front, the country's gold imports surged about three-fold to hit a record high of $14.72 billion in October, mainly due to higher festival and wedding demand, according to commerce ministry data.

Gold imports stood at $4.92 billion in October 2024. Cumulatively, imports during April-October this fiscal year rose 21.44 per cent to $41.23 billion from $34 billion a year ago.

High gold imports have pushed the country's trade deficit (difference between imports and exports) to a record high of $41.68 billion in October.

"Traders will closely watch Thursday's September jobs report for insights into the health of the US economy, while the release of the Fed's latest meeting minutes on Wednesday will provide additional rate guidance," Jigar Trivedi of Reliance Securities, said.