Gold and Silver Prices: Friday was a bit disappointing for gold and silver investors in India. While gold remained above $4,000 per ounce in the international market, its prices saw a sharp decline in the domestic market. The price of 24-carat gold fell to ₹1,21,470 per 10 grams today, representing a decrease of nearly ₹1,000 compared to the previous day.
Gold Prices Fall for the Second Consecutive Week
According to GoodReturns, gold prices fell by more than 2% this week. This is the second consecutive week that the bullion market has witnessed a decline. According to market experts, this decline comes at a time when expectations of an imminent interest rate cut by the US Federal Reserve have diminished. Fed Chairman Jerome Powell indicated that any immediate easing will not be adopted, given the US economy’s employment and inflation data.
Following this statement, US Treasury yields rose, strengthening the dollar and putting pressure on gold prices. Analysts say that investors shy away from gold as the dollar strengthens, as it is a non-interest-bearing asset, and rising interest rates reduce its attractiveness.
Gold Rates in Different Cities Across India
The price of 24-carat gold in major Indian cities today ranged between ₹12,147 and ₹12,327 per gram. In southern cities like Chennai and Coimbatore, gold reached ₹12,327 per gram, while in Mumbai, Delhi, Kolkata, and Hyderabad, it remained stable at ₹12,147 per gram.
The price of 22-carat gold ranged from ₹11,134 to ₹11,299, while the price of 18-carat gold ranged from ₹9,110 to ₹9,419. This difference was due to regional taxes, transportation costs, and local demand.
Silver also saw a sharp decline – one kilogram now costs around ₹1.5 lakh
Like gold, silver also lost its sheen today. While silver was selling for ₹2 lakh per kilogram at the beginning of the month, it has fallen to ₹1.5 lakh per kilogram today. This represents a massive drop of nearly 25%. In Mumbai, Delhi, and Kolkata, the price of 1 kilogram of silver was recorded at ₹1,50,900 today, while in southern states like Chennai, Hyderabad, and Kerala, it remained at ₹1,64,900 per kilogram.
According to GoodReturns, 10 grams of silver is selling for ₹1,509 and 100 grams for ₹15,090. Experts say that despite the slight increase in the international market over the past three days, the decline in the domestic market has not yet stopped. However, according to a Bloomberg report, there is now a possibility of a gradual improvement.
Global Market Movements and Investor Strategy
According to Nick Twidale, chief analyst at Sydney-based AT Global Markets, news of easing trade tensions between the US and China has renewed uncertainty in the market. He says this situation will act as “long-term support” for gold buyers. He explained that on October 20, gold reached a high of $4,380 per ounce, from where it has fallen by about 10%. Now, it is possible that this downward trend will end and the market will return to stability.
Should investors buy gold now?
Market experts believe that this time could prove beneficial for long-term investors. Buying gold at lower prices could yield better returns in the coming months, as the international landscape remains uncertain. Trade tensions, potential changes in interest rates, and the dollar’s position will determine the direction of gold in the coming days.
On the last day of October, both gold and silver prices in India’s bullion market lost their sheen. However, analysts believe this decline may be temporary and that prices may rebound in the coming months as the global economic environment improves. For now, investors can cautiously turn this into a golden opportunity for investment.