A significant decline was observed in the prices of both gold and silver last week. The drop affected markets from the Multi Commodity Exchange (MCX) to the domestic market.
In the futures market, silver fell by 9000 rupees, and in the domestic market—by more than 11000 rupees, making it approximately 1.94 lakh rupees cheaper than its historical high. Simultaneously, the price of 24-carat gold experienced a sharp decline.
Looking at the MCX situation, a fall in the price of silver was noted. The contract for 1 kg of silver expiring on December 4 closed at 225,545 rupees last Friday, compared to 234,696 rupees on September 25. Thus, over five trading days, the price of this precious metal substance decreased by 9,151 rupees per kilogram.
Following the major slump last week, silver became even more affordable compared to its record level. It is worth noting that at the end of January this year, the futures price for silver reached a maximum of 4,20,048 rupees. Comparing this to last Friday's closing price shows that the price of silver on MCX is now 1,94,503 rupees below this maximum per kilogram.
Moving to the domestic markets, according to data from the Indian Bullion Jewelers Association (IBJA.Com), the price of silver decreased by 11,521 rupees over five trading days, falling from 2,32,350 rupees to 2,20,829 rupees per kilogram.
Along with silver, the value of yellow metal—gold—also significantly decreased. On MCX, the price of 10 grams of 24-carat gold expiring on December 4 dropped to 1,50,250 rupees last Friday. Previously, on September 25, this figure was 1,53,277 rupees, indicating a decrease in the MCX gold price by 3,027 rupees per 10 grams.
The decline occurred not only in the futures market but also domestically. Over five trading days, the price of gold adjusted from 1,52,113 rupees to 1,48,138 rupees per 10 grams, corresponding to a reduction of 3,975 rupees. IBJA publishes prices that are uniform across the country; however, when purchasing jewelry at a retail point, one must account for 3% GST and manufacturing charges, which increases the final cost.