Gold, Silver May Extend Losses as US Vote, Jobs Data Test Sentiment

Bullion Faces a Week of Political and Economic Tests

Persistent selling has weakened gold and silver, leaving the next move dependent on election developments, economic data and geopolitical risks.

Silver’s sharper fall highlights the breadth of the retreat

Precious metals ended the week under pressure on both domestic and overseas markets. On the Multi Commodity Exchange, December gold futures fell Rs 3,539, or 2.5%, to Rs 1.38 lakh per 10 grams. Silver futures dropped Rs 16,587, or 8.5%, to Rs 1.79 lakh per kg.

International prices also weakened. December Comex gold lost USD 109, or nearly 3%, to close at USD 3,898.9 an ounce, while silver fell USD 4.67, or nearly 9%, to USD 49.27. Gold’s cumulative decline of more than 6% over three weeks points to persistent selling and limited buying interest at higher levels, rather than a one-session setback.

The late-week acceleration is notable: analysts described selling intensifying after an earlier brief recovery, with silver especially weak. That leaves both metals vulnerable if bearish momentum continues, though a sharp fall can also make prices more sensitive to fresh political or economic surprises.

Election and data could reset market expectations

Investors will watch the US midterm election results on November 3 and President Donald Trump’s subsequent actions. The political outcome may influence risk sentiment, while developments involving the US, Israel and Iran could add another layer of uncertainty. Any escalation could sharply lift crude prices, analysts said, and put risk assets, including equities and commodities, under further selling pressure.

Economic releases will provide a separate test. Manufacturing and services purchasing managers’ index data from major economies, eurozone inflation figures, and US unemployment and nonfarm payrolls numbers are due later in the week. These indicators could alter how investors assess economic conditions and the outlook for precious metals. The direction will depend on how markets interpret the releases; the figures themselves do not guarantee a recovery or a further decline.

Oil and bullion are sending competing signals

Brent crude was above USD 114 a barrel and US West Texas Intermediate near USD 105, according to the market commentary. One analyst noted a strong negative correlation between bullion and oil over the past six to eight months. That relationship is a useful backdrop, but it does not determine the next move: geopolitical tension may support intermittent demand for precious metals even as higher oil prices coincide with pressure across risk assets.

The sell-off may also have been amplified by liquidation after global and US technology stocks fell, with bullion positions potentially sold to meet margin calls. Such flows can intensify price moves without establishing a lasting change in the underlying outlook. For investors, the distinction between forced selling and sustained demand will matter as new information arrives.

Key Highlights

• MCX December gold fell 2.5% over the week to Rs 1.38 lakh per 10 grams.
• MCX silver slid 8.5% to Rs 1.79 lakh per kg, underperforming gold.
• Overseas gold and silver prices also ended sharply lower.
• US election developments and major economic releases may shape near-term sentiment.
• Geopolitical tensions could support episodic bullion demand while adding volatility to oil and risk assets.

Investor Note: The recent losses show that precious metals can remain under pressure even amid geopolitical uncertainty. Investors may want to watch how prices respond to the election, economic data and further selling, rather than treating either a rebound or continued weakness as assured.