A significant decline was observed in the prices of both gold and silver on Wednesday. On the Multi Commodity Exchange (MCX), the futures price for silver suddenly plummeted, making it considerably cheaper than its historical high. Simultaneously, the value of precious gold also fell.
On MCX, the futures price for silver dropped by more than 2800 rupees per kilogram. During trading on Tuesday evening, the futures price for silver expiring on December 4 closed at 211,485 rupees, but about two hours after the start of trading on Wednesday, it decreased to 208,601 rupees, corresponding to a drop of 2884 rupees per kilogram.
Following this major slump on the third working day of the week, silver became substantially cheaper than its record level. In January of this year, the MCX Silver Price first exceeded the 400,000 rupee mark, reaching a peak of 420,048 rupees per kilogram; from this point, it has fallen to 211,447 rupees per kilogram.
The price decrease affected not only the MCX futures market but also the domestic market. According to data published on the Indian Bullion Jewelers Association (IBJA.Com) website, on October 19, silver closed at 208,750 rupees, while on Wednesday it opened at 205,850 rupees, indicating a decrease of 2900 rupees. Compared to the last working day of last week, the price fell by 5068 rupees per kilogram over two days, compared to the closing price of 210,918 rupees on October 16.
In addition to silver, futures prices for gold also showed a downward trend. Although the daily trading session on MCX was closed on Wednesday in observance of Ram Day, in the evening session, the price of 24-carat gold for 10 grams closed at 146,519 rupees on Tuesday, and on Wednesday it decreased to 145,689 rupees. Thus, futures gold expiring on December 4 became cheaper by 830 rupees per 10 grams.
A fall in the value of gold was also recorded in the domestic market. According to IBJA, on Monday, 24-carat gold closed at 145,944 rupees, and on Wednesday, immediately after the market opened, the price dropped to 144,060 rupees, representing a decrease of 1884 rupees. Prices for other types of gold also declined: 22-carat gold cost 143,483 rupees for 10 grams, 20-carat gold cost 131,959 rupees for 10 grams, 18-carat gold cost 108,045 rupees for 10 grams, and 14-carat gold cost 84,275 rupees for 10 grams.