Gold, silver futures drop as investors book profits ahead of US data

New Delhi: Gold and silver prices declined in the futures trade on Tuesday as traders booked profits and adopted a cautious stance ahead of the outcome of the US non-farm payrolls report.

Analysts said the payrolls data will provide fresh cues on the US Federal Reserve's interest rate trajectory.

On the Multi Commodity Exchange (MCX), gold futures for February delivery fell by Rs 341, or 0.25 per cent, to Rs 1,33,789 per 10 grams in a business turnover of 13,900 lots.

Silver futures also witnessed selling pressure as traders locked in gains. The white metal for the March 2026 contract fell Rs 1,189, or 0.6 per cent, to Rs 1,96,712 per kilogram in 11,024 lots.

"Gold and silver prices fell as investors are awaiting the US non-farm payrolls report for October and November, which would provide additional information on the Federal Reserve's policy stance," Renisha Chainani, Head - Research at Augmont, said.

Chainani further stated that if labour market data reinforces concerns that employment remains a weak point, precious metals could benefit, as it could strengthen the case for quicker rate cuts by the US Federal Reserve (Fed).

In the international markets, Comex gold futures for February delivery snapped a three-day winning streak, decreasing by USD 37.8, or 0.87 per cent, to USD 4,297.4 per ounce.

"Gold prices are trading near USD 4,300 per ounce, as investors await the US non-farm payrolls report later in the day for more clues on the Fed's policy outlook," Jigar Trivedi, Senior Research Analyst at Reliance Securities, said.

Investors are closely tracking US retail sales and preliminary manufacturing data, while November inflation numbers for Thursday are also expected to remain in focus.

According to Trivedi, market participants are currently pricing in a 75.6 per cent probability that the Federal Reserve will keep interest rates unchanged at its January meeting, although some expectations persist for two rate cuts in 2026.

However, gains in bullion prices were capped by easing geopolitical concerns, amid prospects of a Russia-Ukraine peace deal after US President Donald Trump said an end to the conflict was "closer than ever".

Meanwhile, Comex silver futures for the March 2026 contract slipped by USD 1.5, or 2.32 per cent, to USD 62.11 per ounce.

"Gold remains the primary hedge for Indian investors, silver is increasingly behaving like a leveraged play on both global growth and the energy transition," Rajkumar Subramanian, Head - Product & Family Office at PL Wealth, said.

He noted that silver's dual role as a monetary and industrial metal makes it particularly sensitive to shifts in interest rates, the dollar, and manufacturing demand.

"In the Indian context, silver is no longer just a tactical trade. With rising industrial usage and increasing retail participation through ETFs and digital platforms, silver is emerging as a strategic portfolio diversifier - offering higher volatility than gold but also higher upside during commodity upcycles," Subramanian said.

From solar manufacturing and EVs to electronics, India's clean-energy and manufacturing push is structurally raising silver demand, making it a hybrid asset that benefits from both economic growth and periods of global uncertainty, he added.