On Friday, the commodities market saw a significant drop in the prices of gold and silver. On the MCX exchange, the price of gold fell by 4000 rupees from its record high, while silver lost up to 9000 rupees. Although there was a slight recovery in prices later on.
On MCX, at the close of trading, the price of gold futures for October 5 fell by 1.63%, amounting to 156400 rupees per 10 grams, which was a decrease of 2596 rupees. Similarly, the price of silver futures for September 4 decreased by 1.66% or 4000 rupees, reaching 2,36,651 rupees per kilogram.
In the Delhi markets, on Friday, pure 24-carat gold with 99.9% purity dropped by 3300 rupees, reaching the mark of 1,62,400 rupees per 10 grams, compared to 1,65,700 rupees on Thursday. Over three days, the value of gold decreased by 4,700 rupees, which is about 3%. Additionally, silver also became cheaper in Delhi; its price in the local market fell by 5000 rupees, reaching 2,45,500 rupees per kilogram, whereas it cost 2,50,500 rupees per kilogram in the previous trading session.
The main reason for the decline in gold and silver prices was the statement from the US Federal Reserve. In the speech by Federal Reserve Chairman Kevin Warsh, a possible future interest rate hike was indicated. There are concerns that the Fed may raise rates to 2%, which led to the fall in precious metal prices.
On the global market, the price of gold fell by 3.43%, reaching $4,504.10 per ounce. Silver also showed a decline, dropping by 4.57% to $66.255 per ounce.