Gold and Silver Price Today: Gold and silver prices have plummeted, falling by as much as ₹7,000 throughout the day..
Gold and Silver Price Crash: If you are planning to buy gold or silver, this news is for you. A sharp, intense surge in crude oil prices has significantly dimmed the luster of gold and silver. Across global, domestic, and spot markets, the prices of both precious metals have plummeted.
In the global market, gold has become 1.45% cheaper, while silver has seen a decline of 3.25%. This has had a direct impact on the domestic futures market—the Multi Commodity Exchange (MCX)—where gold has fallen by 1.34% and silver by 3%.
The bullion market has also witnessed a massive drop in prices. According to data from the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold has now reached ₹1.42 lakh per 10 grams. Silver has fared even worse.
In a single day, the price of silver has dropped by ₹7,000. Following this sharp decline, it has fallen below the ₹2 lakh per kilogram mark.
Also read: Could gold fall below ₹1 lakh? Bank of America claims the decline is far from over; why did BofA issue new targets?
What are the latest rates for gold and silver?
Global Market: On COMEX, gold slipped by 1.45%, falling below $4,100 per ounce. At the time of writing, it was trading at $4,089, down by $60. Silver also saw a significant decline, with its price falling by 3.25% to trade at $55 per ounce.
Domestic Futures Market: On the Multi Commodity Exchange (MCX), gold for December delivery has become cheaper by ₹2,045. At the time of writing, the price was down by 1.40%, trading at ₹1,44,034. During the trading session, it reached a high of ₹1,45,120 and a low of ₹1,43,930. In the previous trading session, it had closed at ₹1,46,079.
Silver fared even worse. Silver for December delivery saw a decline of 2.90%—a drop of ₹6,071—bringing its price to ₹2,03,097 per kilogram. During the trading session, it hit a high of ₹2,06,000 and a low of ₹2,02,443.
Update from the Bullion and Jewellery Association: According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold fell by ₹1,411, reaching ₹1,42,694 per 10 grams. The price of 22-carat gold dropped by ₹1,292 to ₹1,30,708, while 18-carat gold became cheaper by ₹1,058, reaching ₹1,30,708 per 10 grams. Meanwhile, the price of silver fell by ₹7,006, dropping below the ₹2 lakh mark to ₹1,99,777 per kilogram.
Why did the prices of gold and silver fall?
Jatin Trivedi, VP (Research Analyst) at LKP Securities, explained the primary reason for this decline. He noted that the trend of weakness in gold continues, with the price now at ₹1.44 lakh. Simultaneously, in the international market, COMEX gold has fallen to $4,088. The market is under significant pressure due to ongoing tensions in West Asia and the anticipation of rising interest rates in the United States. Investors are now focused on the Federal Reserve's (Fed) decision, expected next week. The signals regarding inflation and interest rates emerging from that decision will determine the future direction of the market.
Aamir Makda, a commodity analyst at Choice Broking, also shared his perspective, noting that tensions in the Middle East have raised concerns about potential inflation. The market anticipates that rising energy costs could prompt the Fed to hike interest rates in December.
On technical charts, gold has weakened, falling below its critical 200-day exponential moving average (200-DEMA) of 145,845. The next major support level for gold now lies at 142,950. He believes that the bearish trend in gold is likely to persist; therefore, traders should look for opportunities to sell into any price rallies.
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