Gold prices edged higher on the Multi Commodity Exchange (MCX) on Friday, November 13, as bargain buying emerged after a sharp correction in the previous session. Silver, however, continued to trade under pressure, reflecting a relatively weaker recovery in the white metal.
On the MCX, December gold futures were trading at ₹1.36 lakh per 10 grams, up 0.39%, while December silver futures were quoted at ₹1.78 lakh per kg, down 0.14%.
The recovery in gold follows a sharp decline on Thursday (November 12), when international prices touched their lowest level since October 2025. Gold subsequently rebounded as investors looked to buy at lower levels, although concerns over US inflation, interest rates and a stronger dollar continue to influence sentiment.
International spot gold rose 1.1% to $3,918.59 per ounce on Friday (November 13), while spot silver gained 0.5% to $50.27 per ounce.
Why did gold recover after Thursday’s sharp fall?
The latest recovery in gold appears to be driven partly by bargain buying and adjustments in investor positions after the steep sell-off.
Kelvin Wong, Senior Market Analyst at OANDA, said the recovery was largely a positioning adjustment after short-term momentum indicators had reached extremely oversold levels following Thursday’s decline.
He also pointed to US Treasury yields and the dollar as important factors influencing gold’s near-term direction.
A sudden reversal in Treasury yields could slow the dollar’s strength and provide support to gold, Wong said.
Why are US interest rates important for gold prices?
The US Federal Reserve’s interest rate outlook has emerged as a key driver for precious metals. Markets are currently pricing in an 89% probability of a 25-basis-point rate hike in December, according to CME FedWatch data cited by Reuters.
Higher interest rates generally weigh on gold because the metal does not offer any regular interest income. When bond yields rise, investors may prefer interest-bearing instruments over bullion.
Vikram Subburaj, CEO of Giottus.com, said rising US Treasury yields and a stronger dollar were weighing on precious metals.
He also pointed to higher oil prices amid renewed US-Iran tensions as an additional source of inflation concerns, reinforcing expectations that monetary policy could remain restrictive.
According to Subburaj, silver’s sharper decline also highlights its greater sensitivity to changes in investor risk appetite and industrial demand expectations.
How are dollar and rupee movements affecting Indian bullion prices?
For Indian investors, international gold prices are only one part of the equation. The rupee-dollar exchange rate also plays an important role in determining domestic bullion prices.
The rupee weakened to around 94.16 against the US dollar on Friday, according to Reuters, as higher crude oil prices and rising US Treasury yields put pressure on the currency.
Gaurav Garg, Head of Research at Lemonn, said gold’s recovery towards $3,920 an ounce was taking place against the backdrop of a stronger dollar and rising US Treasury yields.
He noted that the 10-year US Treasury yield moving above 5.10% was increasing the opportunity cost of holding non-yielding assets such as gold.
For India, a weaker rupee makes imported gold and silver more expensive. This means domestic prices may not fall by the same extent as international prices when the rupee is depreciating.
Import duties, GST and domestic premiums also contribute to the difference between international bullion prices and retail rates in India.
What should gold and silver investors watch next?
The immediate trigger for precious metals is the US Producer Price Index (PPI) data, which could provide further clues about inflation and the Federal Reserve’s interest rate trajectory.
A higher-than-expected inflation reading could strengthen expectations of further rate hikes, supporting the dollar and Treasury yields and potentially putting additional pressure on gold and silver.
On the other hand, softer inflation data could ease concerns around monetary tightening and provide some support to bullion.
Subburaj said gold’s ability to hold around the $3,900 international level and silver’s performance near $50 would be important indicators to watch.
For Indian investors, the rupee’s movement, crude oil prices and international bullion trends will remain important in determining domestic price direction.
NOTE TO READERS
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Readers should consult certified experts before making any investment decisions.