November 7, 2024: Gold prices have seen a further decline following the outcome of the US presidential election, with investors reacting to the political shift and a stronger US dollar. 

On Thursday, the December futures contracts for gold on the Multi Commodity Exchange (MCX) opened 0.37% lower at ₹76,369 per 10 grams. Meanwhile, silver futures for December were down 0.24%, trading at ₹90,601 per kilogram. Over the past two days, gold has fallen by ₹2,100 per 10 grams, while silver has seen a steeper decline of ₹4,050 per kilogram.

According to the India Bullion and Jewellers Association Ltd (IBJA), the price of 24-carat gold stands at ₹76,570 per 10 grams, with 22-carat gold priced at ₹74,720 per 10 grams. Prices for 20-carat and 18-carat gold are ₹68,130 and ₹62,201 per 10 grams, respectively.

Industry experts attribute the drop in gold and other commodity prices to the strengthening of the US dollar following Donald Trump’s win in the presidential election. The outcome of the election has sparked a rise in investor confidence in the US economy, driving up the value of the dollar and pressuring gold prices.

Pranav Mer, Vice President of EBG-Commodity & Currency Research at JM Financial Services, explained, "Gold and most other commodities are trading in the negative territory due to a strong US dollar, which was bolstered by Trump's victory." He added that the market's attention will now shift to upcoming US Federal Reserve policy announcements and economic data, which could influence further price movements.

Over the past week, gold prices have fluctuated sharply between ₹77,500 and ₹78,500 per 10 grams, driven by the volatile movements of the dollar index, which recently surged to 105. This strength in the dollar pushed gold prices to their lowest levels in several weeks, with the international price of gold dipping to $2,700 per ounce.

Jateen Trivedi, a senior analyst at LKP Securities, noted that the ongoing weakness in gold prices is primarily linked to the strong performance of the dollar. "The dollar strength has been pushing gold lower, with the price testing the ₹77,500 per 10 gram mark," he said.

Looking ahead, experts suggest that gold may continue to face downward pressure in the short term. According to Mer, the critical resistance level for gold is seen at ₹78,000 on the MCX and $2,755 in international markets. On the downside, support is expected at ₹75,000 per 10 grams and $2,680 per ounce.