Why gold and silver prices are falling in India

Gold and silver prices continued to fall in India on Tuesday (November 18), marking a third consecutive session of losses as expectations of a US Federal Reserve rate cut in December weakened sharply.

On the Multi Commodity Exchange (MCX), gold futures (December) dropped ₹1,807 (1.47%) to ₹1.21 lakh per 10 grams. The February 2026 contract fell by a similar margin to ₹1.22 lakh per 10 grams.

Silver futures (December) declined ₹3,660 (2.36%) to ₹1.51 lakh per kg, while the March 2026 contract slid to ₹1.54 lakh per kg.

Analysts attributed the decline to fading rate-cut bets and a stronger US dollar.

“Gold and silver extended losses as expectations of a December US rate cut continued to diminish. With no major positive triggers, bulls remain hesitant at these elevated price levels,” said Rahul Kalantri, Vice-President, Commodities, Mehta Equities Ltd.

Global prices drop for fourth day

In international markets, Comex gold (December) fell 1.60% to $4,009.5 per ounce, its fourth straight decline. The metal has lost $204 over the past four sessions. Comex silver slipped to $49.50 per ounce, retreating from Monday’s close of $50.71 an ounce.

“Dwindling expectations of a US rate cut and the absence of major macroeconomic data over the past six weeks have weighed on sentiment,” said Jigar Trivedi, Senior Research Analyst, Reliance Securities.

He noted that recent hawkish comments from Fed officials have further tempered expectations.

Federal Reserve Vice Chair Philip Jefferson on Monday urged a “slow” approach to policy easing, signalling that the central bank remains cautious even as inflation pressures ease.

Domestic factors add pressure

India’s gold imports surged nearly three-fold to $14.72 billion in October, supported by festival and wedding demand.

Cumulative imports between April and October rose 21% to $41.23 billion, widening India’s monthly trade deficit to a record $41.68 billion.

According to IBJA Vice President Aksha Kamboj, the market is still adjusting to seasonal demand patterns.

“Following a brief surge, gold prices have dipped marginally. The overall outlook remains stable, and investors may use the correction to enter gradually,” she said.

Silver, she added, also faces uneven physical demand.

What traders are watching

Market participants now await a string of US releases:

• Fed meeting minutes (Wednesday)


• September US nonfarm payroll data (Thursday)

Rate-cut odds for December have slipped from 60% earlier this month to 43%, according to market estimates.

Despite near-term weakness, analysts see medium-term support from structural drivers such as central bank buying, geopolitical risk, and concerns over US debt sustainability.

-With PTI inputs