A significant decline in the prices of gold and silver was observed last week. Both precious metals became considerably more affordable on the Multi Commodity Exchange (MCX) exchange.
On the futures market, the cost of one kilogram of silver decreased by more than 14,000 rupees, and the precious metal itself became cheaper by 2.08 lakh rupees per kilogram compared to its historical high. At the same time, the price of 10 grams of 24-carat gold dropped by 3,500 rupees for every 10 grams.
Considering the fall in the futures price of silver on MCX, it should be noted that 1 kg of silver with an expiration date of December 4 closed at 2,11,418 rupees last Friday. On the second-to-last working day of the previous week, this metal was priced at 2,25,755 rupees per kilogram. Thus, over five trading days, silver decreased in price by 14,337 rupees per kilogram.
Following this drop, the futures price of silver became even more accessible compared to record levels. In January, the silver futures rate exceeded the mark of 4 lakh rupees, reaching a peak of 4,20,048 rupees per kilogram. However, a subsequent crash in prices occurred, and the current decrease shows that the price of silver has fallen by 2,08,630 rupees per kilogram from its peak level.
The decrease in silver prices was recorded not only on the futures market but also on the domestic market. According to data published on the Indian Bullion Jewelers Association (IBJA.Com) website, on October 9, 1 kg of silver cost 2,21,109 rupees in the domestic market. By last Friday, this price had decreased by 10,191 rupees, amounting to 2,10,918 rupees per kilogram.
As for the precious yellow metal—gold—its price also showed a decline over the last five trading days. On MCX, on the futures market with an expiration date of December 4, 10 grams of 24-carat gold cost 1,51,499 rupees on October 9. By last Friday, this price fell to 1,48,000 rupees, which represents a decrease of 3,499 rupees for 10 grams over five days.
Similarly, the price of gold decreased on the domestic market as well as on the futures market. After the close of trading last Friday, the price of 10 grams of gold was 1,46,426 rupees for 10 grams. Earlier, at the end of the previous week, it was 1,49,430 rupees for 10 grams. Thus, according to IBJA Gold Rate data, there was a fall of 3,004 rupees for 10 grams. It should be noted that when purchasing gold jewelry in jewelers' shops, making charges and 3% GST must be paid.