Precious Metals Market Sees Sharp Decline
The Indian bullion market witnessed a significant downturn as gold prices experienced a dramatic fall of Rs 3,900 per 10 grams, settling at Rs 1,25,800. This substantial decline occurred amid growing concerns that the US Federal Reserve might delay anticipated interest rate cuts.
Silver Follows Gold's Downward Trend
The bearish sentiment extended to silver markets, where the white metal saw an even more pronounced drop. Silver prices tumbled by Rs 7,800 to reach Rs 1,56,000 per kilogram, inclusive of all applicable taxes. This parallel movement highlights the broad-based pressure affecting precious metals.
Federal Reserve Policy Impacts Global Markets
The primary driver behind this market movement appears to be shifting expectations regarding US monetary policy. As hopes for immediate rate cuts by the Federal Reserve recede, global gold markets have responded negatively. The strengthening US dollar and higher bond yields typically create headwinds for gold, which doesn't offer interest or dividends.
Market analysts note that the November 18, 2025 price adjustment reflects ongoing volatility in global financial markets. Indian investors and jewelry buyers are closely monitoring these developments, as domestic prices include import duties and local taxes that can amplify international price movements.
The current market scenario presents both challenges and opportunities for different market participants. While investors face portfolio losses, jewelry buyers may find more attractive entry points for their purchases. Market watchers suggest keeping a close eye on upcoming US economic data and Federal Reserve communications for future price direction clues.
