A substantial drop in prices occurred in the gold and silver markets (Gold-Silver Price Crash). On the first trading day at the Multi Commodity Exchange (MCX) and in the domestic market, prices sharply declined. Specifically, the price of 10 grams of 24-carat gold fell by more than 4000 rupees, and the cost of 1 kilogram of silver decreased by over 9000 rupees.
Strong volatility in gold and silver prices was also observed last week, which continues at the beginning of the current week.
On Monday, the commodity market, including MCX and the domestic market, saw a collapse in silver prices. According to MCX Silver Price data, the silver futures contract expiring on December 4 dropped to 2,27,197 rupees per kilogram, compared to the previous closing of 2,34,696 rupees. Thus, the futures price for silver fell by 7,499 rupees in a single jump.
While silver lost 7499 rupees per kilogram on MCX, an even sharper decline in silver prices occurred in the domestic market. According to the Indian Bullion Jewelers Association (IBJA.Com) website, the price of 1 kilogram of silver suddenly slipped from 2,32,350 to 2,23,192 rupees. This means that silver became cheaper by 9,158 rupees per kilogram.
Not only did silver experience a significant decrease, but gold also dropped in price on Monday. Analyzing the MCX Gold Rate, it is visible that the futures price for 24-carat gold reached 1,47,343 rupees, whereas it closed at 1,50,881 rupees for 10 grams on the previous business day. Consequently, the price of 10 grams of 24-carat gold on MCX decreased by 3,538 rupees.
When reviewing the rates updated by the Indian Bullion Jewelers Association, the fall in gold prices in the domestic market was more pronounced than in futures trading. Last Friday, the price of 24-carat gold in the domestic market was 1,52,113 rupees, and on Monday, it fell to 1,48,040 rupees. This corresponds to a decrease in the gold price of 4,073 rupees in the domestic market.
It is important to note that the gold and silver prices updated by IBJA are uniform across the country. However, when purchasing jewelry from jewelers, 3% GST and making charges are added to these prices, increasing the final cost.