Gold, silver prices drop ahead of Diwali; check latest rates in bullion market
Prices have dropped sharply from January record highs, offering buying opportunity for festive shoppers.
New Delhi (The Uttam Hindu) : There is some good news for those who are planning to buy gold and silver before Dhanteras and Diwali. The decline in the prices of precious metals that has been continuing for the past several days continued on Tuesday as well. Weakness was seen in the prices of both gold and silver on the domestic futures market MCX. Gold fell to around Rs 1.42 lakh per 10 grams, while the price of silver fell to around Rs 1.92 lakh per kilogram. This fall in prices may benefit those consumers who are planning to buy jewellery during the festivals.
How much did the prices of gold and silver fall?
Gold for December delivery fell by Rs 656 to Rs 1,42,417 per 10 grams on the MCX in Tuesday's trade. During the day, the price reached Rs 1,42,216 per 10 grams. This represents a decline of about 0.43 percent.
On the other hand, silver prices witnessed more pressure. Silver fell by about Rs 3,808 to Rs 1,91,985 per kg on MCX. During the trading session, silver prices slipped to Rs 1,91,516 per kg. During this period, the price recorded a decline of about 2.1 percent.
Pressure on precious metals in the international market too
The fall in gold and silver prices isn't limited to the Indian market, but selling pressure is also persisting in the international market. On Tuesday, gold fell 0.54 percent to trade at $4,016.60 per ounce on Comex. Silver, meanwhile, fell 2.73 percent to $52.855 per ounce.
According to market experts, uncertainty over interest rates, weak investor demand, and profit-booking in global markets have impacted precious metal prices. Investors are now closely watching the US Federal Reserve's monetary policy and interest rate signals. These decisions could impact gold and silver prices going forward.
Gold and silver became much cheaper than the record level
Gold and silver reached historic highs in January of this year. On January 29th, the price of gold reached a record high of approximately ₹1,80,779 per 10 grams. Similarly, silver also reached a historic high of approximately ₹4,20,048 per kilogram in January.
Compared to current prices, gold has fallen by more than ₹38,000 per 10 grams from its record high. Silver prices have also fallen significantly, by approximately ₹2.28 lakh per kilogram from their record highs.
This significant price drop may provide some relief to holiday shoppers. However, the market is likely to remain volatile going forward.
Will gold and silver become cheaper in the future?
According to market experts, the direction of gold and silver prices in the coming days will largely depend on global economic conditions, decisions by the US Federal Reserve, and investor demand. Increased domestic demand during Dhanteras, Diwali, and the wedding season may provide some support to prices. However, further declines cannot be ruled out if selling pressure continues in the international market.
Regarding technical levels, the range of ₹1,43,000 to ₹1,43,700 per 10 grams is considered to be a key resistance for gold on MCX. If prices hold above this level, stability could return to the market. Meanwhile, the ₹1,40,000 to ₹1,41,000 level is considered to be a key support for gold.
For silver, the level of Rs 2 lakh to Rs 2.02 lakh per kg is an important resistance, while the range of Rs 1.92 lakh to Rs 1.94 lakh is considered an important support area.
What are the signals for buyers?
The decline in gold and silver prices could provide an opportunity for those shopping ahead of the festive season. However, further price changes are possible, so it's important to check the latest prices before purchasing. When purchasing jewelry, consider local bullion market prices, purity, making charges, and applicable taxes.