Strong Dollar and Mixed Fed Signals Put Pressure on Gold and Silver Prices

Gold and silver prices retreated on Monday, November 24, as a strong US dollar and mixed signals from the US Federal Reserve weighed heavily on global precious metals. The weakness was also reflected in India, where domestic gold rates softened despite a lower rupee typically offering some cushion.

Global Gold Prices Decline for the Third Straight Session

In international markets, spot gold slipped 0.4% to $4,051.31 per ounce, extending a three-session losing streak. However, US gold futures saw a mild turnaround, rising 0.8% to $4,047.70 an ounce, driven by bargain buying after recent declines.

Spot silver remained steady at $49.98 per ounce, holding its position near important support levels even as the broader sentiment stayed cautious.

Important: The persistent strength in the US dollar index is emerging as the biggest pressure point for precious metals globally.

Dollar Strength Continues to Weigh on Bullion

The US dollar index remained near six-month highs, making dollar-priced bullion more expensive for buyers in other currencies. This usually triggers selling pressure or reduces demand for gold and silver in global markets.

Analysts said that as long as the dollar remains above the psychological mark of 100, gold may continue to face resistance.

Jigar Trivedi, Senior Research Analyst at Reliance Securities, warned that “if the index continues to trade above 100, there will be further pressure on gold.” He added that in the absence of new geopolitical triggers, the outlook may remain “flattish to negative” over the next few weeks.

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Fed Signals Create Confusion in the Market

Adding to the pressure were mixed cues from the US Federal Reserve regarding the future of interest rates.
According to the CME FedWatch Tool, rate-cut expectations for December slipped to 69%, down from 74% just a day earlier.

While New York Fed President John Williams shared dovish remarks last week, suggesting rates may be near their peak, other Fed officials—including Dallas Fed President Lorie Logan—advocated for maintaining restrictive policy for a longer period.

This policy divide created uncertainty and contributed to the muted sentiment surrounding gold and silver.

Indian Gold Prices Move Lower Despite Weak Rupee

In India, the soft global trends were reflected immediately in morning trade.

• 24-karat gold traded at ₹12,513 per gram

• 22-karat gold stood at ₹11,470 per gram

• 18-karat gold was priced at ₹9,385 per gram

Traders noted that while the weaker rupee typically provides some support for domestic bullion prices, this time the global softness overshadowed any currency advantage.

Analysts See Weakness but Expect Buying at Lower Levels

Despite the subdued tone, several experts believe gold could attract buying interest on price dips.

Jateen Trivedi, VP Research Analyst – Commodity & Currency at LKP Securities, said gold is still trying to stabilise near $4,100 an ounce.
He added that “with rate-cut bets rising again and geopolitical risks lingering, dips are likely to attract renewed buying interest.”

On the domestic front, he pegged resistance near ₹1.25 lakh per 10 grams and support around ₹1.22 lakh per 10 grams.

Rahul Kalantri, VP Commodities at Mehta Equities, identified $3,980 an ounce as key global support for gold and $48 an ounce for silver. However, he cautioned that upside remains capped as long as the dollar index stays elevated.

Outlook: Limited Upside Until Dollar Softens

Overall, the precious metals market is likely to remain under pressure unless the dollar retreats or the Fed provides clearer guidance on rate cuts. At the same time, analysts believe the ongoing uncertainty could attract periodic bargain buying, especially if gold approaches key support zones.

Important: Gold may continue to face headwinds in the short term, but analysts expect renewed interest in declines, especially if global risks intensify.

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