Gold and silver futures skid 10% as dollar strengthens and Fed jitters loom
Gold and silver futures skid 10% as dollar strengthens and Fed jitters loom
Gold and silver futures fell up to 10% as a stronger US dollar and Fed concerns spooked investors, erasing earlier gains and rattling domestic prices.
Global markets witnessed a sharp pullback in precious metals on Thursday, with gold and silver futures down as much as 10% after a pause in their recent rebound. A stronger US dollar and renewed jitters around the Federal Reserve sent selling pressure through futures and spot markets, erasing earlier gains.
In domestic trade, gold prices remained highly sensitive to the dollar and overseas cues. The 24-carat price for 10 grams in Delhi hovered around ₹1,54,220, while silver traded near ₹2,96,900 per kilogram, reflecting the global slide. These levels highlight how local rates continue to mirror movements in international markets and the dollar's strength.
Analysts indicate the move could be a corrective pullback following a recent rally, with the US dollar index testing multi-month highs and bond yields reacting to evolving Fed signals. They caution that volatility could persist in the near term, as investors weigh inflation pressures against policy outlooks.
Market watchers advise a cautious approach for now. Long-term investors are urged to focus on fundamentals rather than chase quick swings, while buyers may prefer to wait for clearer signals before stepping back into the market. For traders, the current environment suggests heightened risk and the potential for further price swings as the dollar strength interacts with global monetary policy expectations.
Overall, the combination of a firm dollar and policy jitters kept precious metals under pressure, with domestic prices showing meaningful sensitivity to global developments and the shifting risk appetite in financial markets.
