Silver prices crash ₹8,500/kg, gold drops ₹2,000/10g as US-Iran tensions revive inflation fears; is more fall ahead? - Livemint

AI desk brief

Article summary

On November 3, December MCX silver fell ₹8,528/kg to ₹175,251, taking year-to-date losses to 25%, while gold dropped nearly ₹2,079/10g to ₹137,863. The article links the declines to inflation and higher-for-longer rate concerns after reported US strikes on Iran’s Qeshm Island lifted crude 1%; it cites CME FedWatch pricing a 75% probability of a December rate hike, with US elections and jobs data ahead. It reports that the World Gold Council cut its forecast for annual gold-investment growth from 400 to 200 tonnes on weaker bar-and-coin appetite, while raising estimated central-bank purchases. Enrich Money’s Ponmudi R describes persistent bearish momentum, identifying silver support at ₹170,000–172,000 and resistance extending to ₹194,000–196,000, and gold support at ₹134,000–135,000 with resistance extending to ₹143,000–143,700; these are analyst views, not Mint’s forecasts.

Market implications · analysis

Over coming sessions, the reported energy shock could pressure bullion if it raises expected real yields or strengthens the dollar; nominal-rate expectations alone do not establish that transmission. Geopolitical demand and stronger official buying could offset weaker investment appetite. Evidence supports a bearish near-term bias, but confidence in global spot implications is limited by the domestic futures focus and absent real-yield or currency data.