Gold prices fell below $4,100 and silver hit $52 on November 10 as Brent crude dropped below $90. Investors got cautious as bets for a December Fed rate hike rose to 84 percent. Many now wait for US inflation data, which showed how global markets reacted to shifting economic trends.
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Gold and silver prices declined in both domestic and international markets on November 10, trimming the previous session's gains as Brent crude dropped below $90 and expectations of a December Fed rate hike strengthened. Investors now await key US inflation data for further cues on the Fed's monetary policy.
International gold fell 1.61 percent near $4,074 per ounce, while silver declined 1.91 percent just above $52 over the past 24 hours. US gold futures were down 0.81 percent to $4,081 per ounce, while silver edged 0.58 percent down just above $52 per ounce (11:46 GMT) from its previous close.
Mirroring international trends, domestic gold futures for December 4 delivery declined 0.78 percent to Rs 1,42,054 per 10 grams, and silver declined 0.75 percent to Rs 1,85,729 per kilogram (17:14 IST) over the past 24 hours on Multi Commodity Exchange. MCX spot gold closed Monday (Nov. 9) at Rs 1,41,838 per 10 grams, and silver at Rs 1,86,023 per kilogram.
Meanwhile, easing geopolitical concerns after a sharp decline in oil prices may have dampened safe-haven demand for gold. Brent crude fell below $90 per barrel for the first time since August, dropping 3.1 percent to $89.62 on Tuesday, as hopes of a West Asia conflict resolution grew following signs of a shift in US President Donald Trump's approach.
Further, markets now assign an 84 percent probability to a Fed rate hike in December, up from 78 percent a week earlier. Higher rates increase the opportunity cost of holding non-yielding assets such as gold, reducing its appeal to investors.
Meanwhile, Axis Mutual Fund's report (October 2026) maintains a bullish long-term outlook on gold, despite near-term headwinds. The report estimates that US interest rates will drive gold prices over the next six months. It expects the Fed rate to peak at around 4.25 percent, citing a cooling labour market, softer-than-expected core PCE inflation at 3 percent and elevated long-term bond yields. A lower-than-expected rate peak could weaken the dollar and real yields, supporting gold.
The same report noted that Indian investors faced a relatively smaller correction in gold prices than global investors. While international gold prices fell 21.4 percent from their January 30 peak to October 30, domestic prices declined by just 14.9 percent in rupee terms, cushioned by rupee depreciation and higher import duties.