Precious metal prices experienced significant declines on November 12, 2026, with December gold futures slipping below the critical $4,000 per ounce mark in international markets. This downturn, which also impacted silver, is largely attributed to hotter-than-anticipated US inflation figures, a strengthening dollar, and a hawkish stance from the Federal Reserve.
Globally, December gold futures decreased by 0.35% to settle at $3,986.42 per ounce. Concurrently, December silver futures saw a nearly 1% drop, trading at $51.495 per ounce. On India's Multi Commodity Exchange (MCX), December gold futures declined 0.41% to ₹1,39,140 per 10 grams, while December silver futures fell 0.83% to ₹1,83,001 per kilogram.
US Inflation Fuels Investor Concern
The latest US inflation report has significantly influenced investor sentiment, intensifying worries about the Federal Reserve's monetary policy. Consumer prices in October rose by 0.4% month-on-month, surpassing market expectations of a 0.3% increase. Core Consumer Price Index (CPI), which excludes volatile food and energy components, also climbed 0.3%, exceeding the anticipated 0.2%. These figures follow a 0.6% rise in the headline CPI during September.
Higher-than-expected inflation makes it challenging for the US Federal Reserve to consider easing its monetary policy. The prospect of elevated interest rates typically weighs heavily on gold and silver, as these non-yielding assets become less attractive compared to interest-bearing investments. Furthermore, a stronger US dollar adds to the pressure by making dollar-denominated bullion more expensive for international buyers using other currencies.
Crude Oil's Retreat Offers No Support
Interestingly, a notable correction in crude oil prices, which have fallen nearly 18% in November, has provided no meaningful support to gold and silver. Investors remain primarily focused on persistent inflation concerns, the dollar's strength, and the ongoing outlook for US interest rates.
Key Levels to Watch for Precious Metals
According to Sugandha Sachdeva, Founder of SS WealthStreet, the near-term outlook for gold and silver remains cautious to negative. For gold, immediate support is identified at ₹1,37,000, with a subsequent important support level at ₹1,35,000. Resistance levels are placed at ₹1,44,500, followed by ₹1,46,200.
For silver, immediate support is seen at ₹1,79,000, with the next level at ₹1,73,000. Resistance for silver is noted at ₹1,92,000 and ₹1,97,000.
Upcoming Economic Data
Markets are now eagerly awaiting the release of US Producer Price Index (PPI) data on November 13, alongside weekly jobless claims. These figures will provide further insights into inflation trends and potentially influence the Federal Reserve's future policy decisions. A stronger-than-expected reading could renew selling pressure on precious metals, while softer data might offer room for a technical rebound.