Gold prices have experienced a decline for the third consecutive week, influenced by a robust US dollar and cautious statements from Federal Reserve officials, according to analysts. The persistent strength of the dollar, combined with the Federal Reserve’s wait-and-see stance, has diminished demand for gold, keeping its prices within a tight trading range during the holiday-shortened week.
On the Multi Commodity Exchange (MCX), gold futures for December delivery fell by ₹165, or 0.14%, ending the week at ₹1,21,067 per 10 grams on Friday. The yellow metal has largely hovered around the ₹1.21 lakh per 10-gram mark, roughly ₹11,000 below its peak of ₹1.32 lakh per 10 grams recorded on October 17.
In the international market, Comex gold futures for December delivery increased by $13.3, or 0.33%, during the past week to settle at $4,009.8 per ounce on Friday. Analysts noted that despite starting the week strong and briefly exceeding the $4,000 threshold, a stronger dollar ultimately pulled prices down. Mid-week risk aversion provided only marginal support, helping gold mitigate some of its losses.
“Gold traded in a tight consolidation range through the week. While bargain-buying occurred on mid-week dips, the robust directional momentum seen in October has slowed,” said Chirag Doshi, Chief Investment Officer of Fixed Income Assets at LGT Wealth India. He emphasized that the market is currently in a pause-and-assess phase as participants await clearer signals from the US dollar and Treasury yields before making substantial commitments.
NS Ramaswamy, Head of Commodity & CRM at Ventura, commented, “Gold prices remain relatively firm, supported by a softer US dollar and expectations of further rate cuts from the Federal Reserve.” He noted that the dollar index has remained within a range of 98-100 since August, with a weaker dollar potentially offering near-term relief for gold.
Ramaswamy also highlighted that the ongoing US government shutdown, which has persisted for two months, has delayed the release of critical employment and inflation reports, creating a ‘data vacuum’ and increasing uncertainty. “Private reports hint at weakness in the labor market, suggesting the Federal Reserve may ease policy rates sooner than expected. Lower interest rates typically bolster gold prices,” he explained.
Chirag Doshi pointed out that initially, a stronger dollar and rising yields had a negative impact on precious metals. However, renewed risk aversion later in the week provided some support. A significant negative factor arose from China’s decision to reduce the VAT exemption on certain retail gold purchases, potentially dampening physical demand in Asia.
Silver prices also declined during the week, reflecting a similar trend to gold amid fears of a global economic slowdown. On the MCX, silver futures for December delivery fell by ₹559, or 0.38%, closing at ₹1,47,728 per kilogram on Friday. In the international market, Comex silver futures for December settled at $48.14 per ounce.
“Silver has shown high-beta behavior, fluctuating more dramatically than gold during both rises and declines,” Doshi noted. He added that while short bursts of festive and industrial demand have led to quick price rallies, these increases are often countered by equally rapid profit-taking, indicating that short-term traders are driving prices rather than long-term investors establishing strategic positions.
Doshi also mentioned that outflows from exchange-traded funds (ETFs) have removed a key stabilizing factor, making domestic prices more susceptible to global fluctuations. However, the continued weakness of the rupee helped limit downside movements in MCX prices, leading to consolidation rather than significant corrections.
Published on November 8, 2025.
