Precious metals faced a bearish trend in the Indian markets on Thursday, with both gold and silver extending their losses. The decline was primarily driven by muted global cues and growing apprehensions around potential interest rate cuts.
Gold and Silver Prices Witness a Decline
The price of gold fell by Rs 600 to settle at Rs 1,31,600 per 10 grams. This drop follows a broader weakening in international markets, where the yellow metal struggled to find momentum. Simultaneously, silver continued its downward trajectory for the second consecutive day.
Silver prices depreciated significantly, dropping by Rs 900 to Rs 1,80,000 per kilogram. This new price includes all applicable taxes and marks a decline from the previous close of Rs 1,80,900 per kg. The sustained fall in silver highlights increased selling pressure in the commodities segment.
Global Trends and Economic Jitters Drive the Fall
The primary factors behind this decline are twofold. Firstly, global gold trends remained subdued, failing to provide any supportive cues for the domestic market. International prices often set the tone for local bullion rates.
Secondly, and more importantly, market participants are grappling with "rate-cut jitters." There is growing uncertainty and speculation regarding the timing and scale of potential interest rate cuts by major central banks, particularly the U.S. Federal Reserve. Higher interest rates typically make non-yielding assets like gold less attractive, and any delay or hesitation in cutting rates can dampen investor sentiment.
Market Outlook and Implications for Investors
The consecutive days of decline for silver and the fall in gold indicate a cautious approach among traders and investors. The current market sentiment is closely tied to macroeconomic data and central bank policies from the West.
For Indian buyers and investors, this price correction could present a potential buying opportunity, but the market volatility advises caution. Analysts suggest that the short-term trend for precious metals will likely remain sensitive to any new developments regarding global interest rates and the strength of the US dollar. The data, reported by PTI, was last updated on 04 December 2025 at 12:47 IST.
