Precious metals prices on the MCX and global exchanges fell as markets anticipate a likely interest rate hike by the US Federal Reserve in December. The move, driven by rising US Treasury yields and a strong dollar, is pressuring non-yielding assets. Investors are now watching upcoming US labor market data for further clues on policy.
Precious metals witnessed a fresh round of selling on Tuesday, November 3, 2026, as investor sentiment soured on expectations of tighter monetary policy in the United States. Gold and silver futures on both domestic and global exchanges moved lower, retreating from their recent peaks as the market adjusted to a higher-for-longer interest rate scenario.
The primary trigger for this decline is the shift in US Federal Reserve interest rate expectations. Market models now assign a 73 percent probability to a rate hike at the upcoming December meeting. This outlook has been reinforced by recent US economic data, which showed resilience in GDP growth and persistent inflation, prompting the Fed to keep its hawkish stance.
Impact on Domestic and Global Prices
On the Multi Commodity Exchange (MCX), gold futures were trading near ₹1,39,168 per 10 grams, while silver futures dropped to approximately ₹1,80,255 per kilogram. In global trade, Comex gold futures slipped to $3,953.50 per ounce, with silver hovering near the $50 mark. These price levels remain significantly lower than the record highs seen earlier this year, as capital shifts toward assets that offer guaranteed returns in a high-interest-rate environment.
Why Rising Yields Pressure Metals
Gold and silver are known as non-yielding assets because they do not pay interest or dividends. When interest rates rise, investors often favor interest-bearing assets like US Treasury bonds, which are considered safer. The 10-year US Treasury yield has climbed to 4.913 percent, making these government bonds more attractive compared to bullion.
Simultaneously, a strengthening dollar has added pressure. Since precious metals are priced in dollars globally, a strong greenback makes these assets more expensive for holders of other currencies, which typically dampens demand. While a recent decline in global crude oil prices provided some hope for easing inflation, the current market focus is entirely on the opportunity cost of holding metals versus earning yield elsewhere.
Critical Support Levels to Monitor
For investors tracking the price movement, technical support levels provide a sense of where selling pressure might find a floor. Gold currently faces an immediate support level at ₹1,38,640, with a more significant secondary floor at ₹1,37,090 on the MCX. If the metal fails to hold these positions, analysts suggest that selling momentum could pick up. Conversely, a move above ₹1,41,130 would be required to signal a return of buyer interest.
Silver is in a similar position, having breached its primary support level of ₹1,81,100. The next major test for silver prices is pegged at ₹1,78,420. The market will continue to look for clarity from upcoming US labor market data, which serves as a key indicator of whether the economy can withstand further rate hikes. For now, the combination of strong US data and the threat of higher rates remains the defining factor for precious metal price movements.