A substantial decline in the cost of gold and silver has been observed in the Indian commodity market. Following a strong rise recorded on Thursday, prices for both metals fell today.
Most market participants attribute this decrease to profit-taking, although other factors are also influencing pricing. On Friday, Dhanmashtami, the price of gold on MCX dropped by approximately 1200 rupees, reaching the mark of 154605 rupees. The cost of one kilogram of silver fell by 1600 rupees, amounting to 239525 rupees.
The main reasons cited for the fall in gold and silver prices include the strengthening of the US dollar, rising crude oil prices, and the anticipation of US unemployment data release. The market will analyze this data to predict what decision the Federal Reserve might make regarding interest rates, which has intensified the profit-taking process.
Globally, a decline in precious metal prices is also being registered: gold is trading at $4518 per ounce, and silver at $67.286 per ounce.
Nevertheless, there is an increase in prices for gold and silver in the retail market. The price of 24-karat gold increased by 1000 rupees, reaching 1,54,908 rupees for 10 grams, while 22-karat gold costs 1,41,896 rupees for 10 grams. Similarly, the cost of silver rose by almost 2,400 rupees, approaching 2.35 lakh rupees.