Gold prices drop below Rs 1.4 lakh/10g, silver jumps by Rs 2,300/kg on MCX on firm dollar, Fed rate hike bets. Check rates in your city

Gold and silver prices dropped in the domestic market as the dollar climbed to a 19-month high while investors continued to increase expectations of a rate increase by the Federal Reserve next month, exerting pressure on the precious metals.

In the domestic market, MCX silver futures for December 2026 delivery dropped around 1.3% or by Rs 2,320 to Rs 1,82,205 per kg. Gold futures for December 2026 delivery fell by Rs 635 to Rs 1,39,081 per 10 grams.

In the international market, gold prices dropped to a more than one-week low after stronger-than-expected US inflation data and hawkish remarks from Federal Reserve officials boosted the US dollar and triggered further expectations of an interest-rate hike next month. Spot gold fell 0.2% to $3,981.49 per ounce, after touching its lowest level since November 4 earlier.


Also read | Indians buy 30% more gold after recent price correction

Traders are now betting on a half-percentage-point Fed rate hike next month. Odds surged after data showed US inflation sped up more than expected in October and policymakers signalled a willingness to tighten policy more aggressively. Traders now see a 100% chance of a rate increase in December, higher from 84% before the release of the data, according to CME's FedWatch tool, cited by Reuters.

Although gold is typically seen as an inflation hedge, higher interest rates hike the opportunity cost of holding non-yielding bullion, reducing its appeal to investors.

What lies ahead for gold, silver prices?

Gold prices steadied after recovering from a sharp selloff earlier in the week, as investors reassessed the impact of hotter-than-expected U.S. inflation and increasingly hawkish Federal Reserve signals, said Manav Modi, Commodities Analyst at Motilal Oswal Financial Services. He noted that October headline CPI rose 0.4% month-on-month, above the 0.3% market forecast, while core inflation also remained firm at 0.3%.

The data, combined with stronger employment figures and comments from policymakers favouring further tightening, pushed markets to fully price in a 25 bps rate hike in December, with expectations of a larger 50 bps increase also gaining traction, the analyst explained, adding that higher rate expectations have supported the dollar and Treasury yields.

“However, the near-term outlook remains challenging as investors await further U.S. inflation and producer-price signals, alongside Fed commentary,” he said.

Also read | Why is the glittering gold losing its sparkle?

Check gold prices in your city

Here are the gold rates in some Indian cities as on November 12, according to Goodreturns data.

Gold Price today in Delhi

Standard gold (22 carat) prices in Delhi stand at Rs 1,28,350/10 grams while pure gold (24 carat) prices stand at Rs 1,39,950/10 grams.

Gold Price today in Mumbai

Standard gold (22 carat) prices in Mumbai stand at Rs 1,28,150/10 grams while pure gold (24 carat) prices stand at Rs 1,39,800/10 grams.

Gold Price today in Chennai

Standard gold (22 carat) prices in Chennai stand at Rs 1,28,150/10 grams while pure gold (24 carat) prices stand at Rs 1,39,800/10 grams.

Gold Price today in Hyderabad

Standard gold (22 carat) prices in Hyderabad stand at Rs 1,28,150/10 grams while pure gold (24 carat) prices stand at Rs 1,39,800/10 grams.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimershere.