As trade concerns lessen and chances for a US Fed rate drop fade, gold and silver prices plummet up to 2%.

At 9:25 am, MCX Silver December contracts were down 1.75 percent at ₹1,52,600 per kg, while MCX Gold December futures were down 1.14 percent at ₹1,21,521 per 10 grams.

Gold and silver rates plummeted to 2% on Tuesday morning in the domestic futures market as demand for safe-haven bullion was impacted by waning expectations of a US Fed rate decrease in December and lessening worries about US tariffs. At 9:25 am, MCX Silver December contracts were down 1.75 percent at ₹1,52,600 per kg, while MCX Gold December futures were down 1.14 percent at ₹1,21,521 per 10 grams.

Due to a strengthening dollar and dwindling expectations for a rate decrease next month, international gold prices dropped for the fourth straight session on Tuesday. The demand for gold was impacted by the dollar index's increase to 99.59.

Because gold is backed by the US dollar, its demand is impacted when the US dollar appreciates.

Uncertainty regarding the state of the greatest economy in the world resulted from the US closure, which concluded after a record 43 days, delaying the publication of important macro statistics. Now that the shutdown is over, attention is on important US data releases this week, such as the September nonfarm payrolls report on Thursday, which may influence expectations for the US Federal Reserve's monetary policy trajectory.

Regarding Fed policy, central bank officials have been sending conflicting messages.

According to Reuters, "Fed Vice Chair Philip Jefferson said on Monday the Fed needed to proceed slowly with further rate cuts, denting expectations for a decrease next month."

"As hopes for a December US rate drop continued to fade, gold and silver continued to lose for the fourth session in a row. Bulls are still cautious because there haven't been any significant positive fundamental triggers in recent days, especially as both metals are still trading at historically high levels, according to Rahul Kalantri, vice president of commodities at Mehta Equities.

"A new round of US economic data is now anticipated by traders later this week. Precious metals were under additional pressure due to a stronger dollar index and marginally higher 10-year Treasury yields, according to Kalantri.

Silver and gold: important levels to keep an eye on
Gold has resistance between $4,075 and $4,110 and support at $4,000 and $3,965, according to Kalantri. Silver's resistance is at $50.75 and $51.10, while its support is at $49.70 and $49.45.

According to Kalantri, gold has support between ₹1,22,350 and ₹1,21,780 in INR, and resistance at ₹1,23,750 and ₹1,24,500. Silver has resistance at ₹1,56,540 and ₹1,57,280 and support at ₹1,53,850 and ₹1,52,100.

MCX gold December could drop to ₹1,22,000 to ₹1,21,700 per 10 grams because global market prices are trending downward, according to Jigar Trivedi, Senior Research Analyst at Reliance Securities.

Gold prices have somewhat decreased, which is symptomatic of the volatility observed in recent weeks, according to Aksha Kamboj, Executive Chairperson of Aspect Global Ventures and Vice President of the India Bullion and Jewellers Association (IBJA).

Despite the fact that global cues are remaining consistent, Kamboj stated that the demand for gold is still changing ahead of the busiest wedding season.

"Given that the overall outlook for gold remains stable, investors may want to take advantage of this slight correction to enter the market gradually," Kamboj stated.