The psychological floor broke. Gold futures on the COMEX exchange slipped under the key $4,000-per-ounce mark on Thursday, November 12, trading down $15.30 or 0.38% to $3,985.20 an ounce. Silver absorbed an even harsher hit. The metal shed $0.447 or 0.86% to change hands at $51.555 an ounce, sliding from its prior close of $52.002. Persistent inflation data and stubborn signals from the US Federal Reserve sent institutional bullion desks scrambling to pare back long positions.
Bulls stepped aside. Both precious metals had already battled aggressive liquidation across international desks in the previous session, and Thursday extended that retreat. Gold holds zero nominal yield. When central banks project higher interest rates over prolonged windows, non-interest-bearing bullion loses its appeal against sovereign debt paper offering cash returns.
Market Context: A hardening US dollar compounded the pain. Because COMEX precious metals trade priced in greenbacks, foreign exchange appreciation raises the purchase hurdle for overseas buyers, curbing demand at physical clearing desks.
Persistent inflationary pressures inside the US economy have upended projections for immediate monetary easing. Traders who wagered on quick reductions now face an unyielding US central bank determined to hold borrowing costs high. And bond markets reflected that shift immediately, with Treasury yields exerting steady upward pull.
Silver took the brunt of the percentage drop. The contract surrendered ground quickly after opening, breaking through near-term support bands as commodity funds cut speculative exposure.
| Asset Contract | Current Price | Absolute Change | Percentage Move | Baseline Close |
|---|---|---|---|---|
| COMEX Gold Futures | $3,985.20 / oz | -$15.30 | -0.38% | $4,000.50 / oz |
| COMEX Silver Futures | $51.555 / oz | -$0.447 | -0.86% | $52.002 / oz |
| Delhi Spot Gold (10g) | ₹1.45 lakh | -₹800 | Downward | Previous Session |
| Delhi Spot Silver (1 kg) | ₹1.87 lakh | -₹5,000 | Downward | Previous Session |
Domestic spot counters mirrored the offshore downdraft. In Delhi physical trade, gold dropped ₹800 on Wednesday to finish at ₹1.45 lakh per 10 grams. Spot silver slumped far more aggressively, falling ₹5,000 to settle at ₹1.87 lakh per kilogram. Holiday disruptions slowed physical turnover across primary northern wholesale hubs.
"The domestic decline was driven partly by subdued trading activity during the Diwali holiday period, with several local markets remaining closed," said Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities.
Cash desks saw thin attendance. With retail and wholesale participants away from trading terminals, order matching dried up across physical jewelers and regional distribution centers.
Global equities supplied little relief. Asian equity bourses kicked off Thursday trade on a cautious, defensive posture. Across US technology boards, Nvidia shares slid in extended trading following reports regarding potential leadership changes at the semiconductor giant, dampening broader risk appetite.
Yet commodity traders remain fixated on Washington and Tehran. Diplomatic negotiations surrounding a proposed US-Iran peace deal continue to generate volatility across energy and precious metal desks, where crude oil swings directly influence inflation projections.
Near-term direction for domestic Indian investors will track three moving targets: US Treasury yield trajectory, dollar index swings, and the rupee-dollar currency pair.