In the latest trading session, global precious metal markets witnessed significant declines, influenced by stronger-than-expected US economic indicators. COMEX silver (March expiry) plunged as much as 3.33%, reaching a low of $81.125 per ounce, down from the previous close of $83.92. Similarly, COMEX gold (April delivery) fell by up to 0.66%, hitting $5,065 per ounce from $5,098.50.
Locally, Indian silver futures for March delivery declined ₹4,288, or 1.63%, to an intraday low of ₹2,58,730 per kilogram on the Multi-Commodity Exchange (MCX). As of 3:11 pm, the contract was trading ₹1,951 lower at ₹2,61,067 per kilogram. The previous day, the same contract had closed at ₹2,63,018, reflecting a 4.15% increase.
Gold futures for April delivery on MCX also saw a decline, falling ₹1,055 or 0.66% to a low of ₹1,57,700 per 10 grams. At the time of reporting, the contract was trading ₹536 lower at ₹1,58,219 per 10 grams, after ending the previous session at ₹1,58,755, marking a 1.24% rise.
The global decline in precious metals was driven by a surge in US economic activity, with non-farm payrolls increasing by 130,000 in the latest report—more than double the expectations of around 70,000. The unemployment rate improved to 4.3%, better than the anticipated 4.4%, reducing expectations of imminent rate cuts by the Federal Reserve.
Additionally, US retail sales data for December indicated a slowdown, with sales remaining flat after a 0.6% rise in November, further influencing market sentiment.
The CME Group’s Fed Watch tool suggests that while market expectations for rate cuts have diminished, most investors still anticipate at least two reductions in the coming months.
Meanwhile, the US dollar index, which measures the greenback’s strength against a basket of six currencies, was marginally weaker, trading 0.05% lower at 96.79, adding to the downward pressure on precious metals.
Analysts note that these macroeconomic indicators have prompted investors to book profits on precious metals, leading to the recent declines across global markets.