Precious metals displayed a divergent trend in early trading on Thursday, with gold witnessing a slight decline while silver managed to post gains. The movement came as investors turned cautious following the release of weaker-than-expected economic data from the United States.
Market Movement Details
On the Multi Commodity Exchange (MCX), the most active gold futures contract for December delivery experienced a dip. The contract traded lower by Rs 88, which translates to a marginal fall of 0.07 per cent. It was last quoted at Rs 1,30,374 for every 10 grams. The business turnover for the session stood at 13,122 lots, indicating steady trading activity.
What's Driving the Prices?
The primary catalyst for the day's trading sentiment appears to be fresh economic indicators from the US. The data, which came in softer than market forecasts, has spurred a wave of caution among commodity traders. Such data often influences the US dollar's strength and expectations around the Federal Reserve's monetary policy, which in turn impacts dollar-denominated assets like gold and silver. While gold, often seen as a safe-haven asset, saw some pressure, silver found some buying interest, leading to its positive performance.
Implications for Indian Investors
The mixed performance highlights the nuanced reaction of the commodity market to global macroeconomic cues. For Indian investors and jewellers, the slight retreat in gold futures prices offers a nuanced view. It underscores that even within the precious metals complex, factors like industrial demand (more relevant for silver) and pure investment demand can lead to split trajectories. Market participants will now be closely watching for further US data releases and central bank commentary for direction.
The trading activity recorded on 04 December 2025 sets the stage for the rest of the week's movement in bullion. Analysts suggest that the market is likely to remain sensitive to any new information that could alter the interest rate outlook in major economies.
