Bullion futures decline as Fed rate cut hopes wane

Gold and silver prices declined in the futures trade due to a firm dollar and easing expectations of interest rate cut by the US Federal Reserve after robust employment data.

On the Multi Commodity Exchange (MCX), gold futures for December delivery fell Rs 355, or 0.29 per cent, to Rs 1,22,372 per 10 grams in a business turnover of 10,453 lots.

Silver futures also traded lower, with the December contract plunging Rs 2,111, or 1.37 per cent, to Rs 1,52,040 per kilogram in 12,907 lots on the MCX.

“Gold and silver show very high price volatile and slipped as expectations for a December Fed rate cut faded after the delayed US jobs report,” Rahul Kalantri, Vice-President of Commodities, Mehta Equities, said.