Fall in Gold and Silver Prices: Sharp Decline in Precious Metal Prices

A collapse in the prices of gold and silver is observed in the market. For the second consecutive day, both precious metals became cheaper on the Multi Commodity Exchange (MCX).

Silver showed a significant drop, losing over 8000 rupees per kilogram, and is now more than 1.94 lakh rupees below its historical high. Meanwhile, the price of gold also decreased, falling by approximately 2000 rupees per 10 grams on Wednesday.

Looking at the decline in silver prices, it is clear that the MCX Silver Price contract expiring on September 4 fell to 2,25,666 rupees per kilogram at the start of trading on Wednesday. In the previous business day, the price closed at 2,29,549 rupees per kilogram, indicating a sharp drop of 3883 rupees per 1 kg of silver.

The fall in silver prices continues for the second consecutive day. According to data, on the last business day of August, the silver contract price was 2,33,841 rupees per kilogram; comparing this with Wednesday's price shows that silver has become cheaper by 8,175 rupees per kilogram over two trading days.

After a major slump on the third business day of MCX Silver Price, silver became even more affordable compared to its historical high. In January of this year, the price of silver reached a record level, exceeding 4 lakh rupees and setting a high of 4,20,048 rupees. However, this was followed by a continuous decline, and as a result of the recent decrease, this precious metal is now selling for 1,94,382 rupees less than its highest level.

The decline was not limited to silver; the precious yellow metal, gold, is also showing a steady fall. The price of gold on MCX with an expiry of October 5 closed at 1,51,729 rupees per 10 grams on the previous business day, but on Wednesday, after opening, it fell to 1,49,827 rupees. Thus, gold became cheaper by 1,902 rupees per 10 grams in one trading day.

Analyzing the changes in gold prices over two trading days, it is evident that the 24-carat gold rate per 10 grams has significantly decreased. On the last business day, August 31, the gold price on MCX was 1,54,460 rupees per 10 grams, and comparing this with Wednesday's price of 1,49,827 rupees shows that gold has become cheaper by 4,633 rupees.

A decline in the price of gold and silver is being observed. Prices for both precious metals have sharply fallen on the Multi Commodity Exchange (MCX).

Silver has significantly decreased, becoming more than 1.83 lakh rupees cheaper than its historical high, reaching a level of 2.36 lakh rupees per kilogram. Meanwhile, the price of gold has decreased by 6000 rupees over the last five trading days.

An analysis of silver price changes on MCX shows that on August 21, the price closed at 2,46,597 rupees per kilogram. Over the past week, silver has shown a rapid decline, with it plummeting by more than 4000 rupees on Friday. Thus, over five days, the cost of one kilogram of silver has decreased by 9,946 rupees.

As a result of the weekly slump, the price of silver has fallen even further below its record level. It is worth noting that at the end of January this year, the price of 1 kg of silver first exceeded the 4 lakh rupee mark, reaching 4,20,048 rupees per kilogram. However, a major crash followed, and the current drop allows purchasing silver 1,83,397 rupees cheaper than the previous peak.

In addition to silver, there is a fall in the price of the precious yellow metal on MCX. On August 21, the price of 24-carat gold on MCX was 1,62,438 rupees per 10 grams, but on this Friday, it fell to 1,56,400 rupees. Consequently, over five trading days, gold has become 6038 rupees cheaper per 10 grams.

The sharp decrease in gold and silver prices has been recorded not only on MCX but also in the domestic market. According to data updated on the Indian Bullion Jewelers Association (IBJA.Com) website, the price of 10 grams of 24-carat gold has decreased from 1,60,620 rupees to 1,59,578 rupees, which is a drop of 1042 rupees. At the same time, in the domestic market, the price of silver has decreased from 2,46,630 rupees to 2,43,892 rupees, representing a loss of 2.738 rupees per kilogram.

Regarding other grades of gold, 24-carat gold currently costs 1,59,578 rupees per 10 grams. The price of 22-carat gold is 1,55,750 rupees per 10 grams, and 20-carat gold is available for 1,42,020 rupees per 10 grams. 18-carat gold is also available for 1,29,260 rupees per 10 grams, and 14-carat gold is available for 1,02,930 rupees per 10 grams.

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.