Gold and silver prices fall: Silver dropped by 4000 rupees, gold also decreased

In recent days, a significant decline in the prices of gold and silver has been observed. Daily drops in silver prices ranging from five to ten thousand rupees are being recorded against the backdrop of the ongoing geopolitical situation worldwide. Usually, during such moments, the prices of precious metals like gold and silver demonstrate growth; however, an opposite trend is observed in this case.

Silver is losing value daily, and gold is following suit. Silver, which reached a record 4.20 lakh rupees per kilogram this year, has decreased by 2.40 lakh rupees over just ten months, reaching the mark of 1.80 lakh rupees per kilogram. This raises a natural question about the reasons for such a fall in silver prices.

On Friday, on MCX, the price of silver with December futures traded at 1,82,500 rupees per kilogram, showing a drop of 3.67 percent or 7,000 rupees by 17:08. Simultaneously, the price of gold decreased by 1.16 percent or 1,657 rupees, amounting to 1,40,900 rupees per 10 grams.

The decrease in the value of gold and silver occurred not only in India's domestic commodity market but also internationally. In the global market, gold fell by 1.26 percent and dropped below $4000 per ounce. Silver, meanwhile, decreased by approximately 4 percent, trading at a price of $50.345 per ounce.

Precious metal markets, like the stock market, are experiencing a period of decline. Prices for gold and silver are showing a steady decrease. This downturn occurs against the backdrop of approaching holidays such as Karva Chauth and Dhanteras, making the purchase of gold and silver an attractive opportunity for buyers.

The most significant drop was recorded in silver. The silver futures contract on the commodity market decreased by up to 2.25 lakh rupees from its peak. In January of this year, the price of silver reached a record high of 4.20 lakh rupees per kilogram, but today it has fallen to 1.95 lakh rupees.

On Friday at 16:00, the price of silver dropped by 2.14 percent, reaching 1,95,300 rupees per kilogram. Additionally, on Thursday, futures prices for silver fell by more than 8000 rupees on MCX.

The main reason cited for the sharp decline in silver prices is the rise in crude oil prices. The price of crude oil has risen to over $114 per barrel, which has triggered a decrease in precious metal prices. There is also a decline in global demand for silver, especially in the industrial sector, leading to a rapid drop in the metal's course.

Furthermore, an expected increase in interest rates by the Federal Reserve is causing concerns about rising inflation and contributing to the decrease in silver's value.

Experts advise those considering investing in silver not to wait for further declines, but instead to acquire the metal in small portions. Although there is a possibility of further decreases in the near future, a price increase is forecasted in the long term.

Since prices have significantly decreased relative to record highs, this presents a favorable moment to purchase silver tableware or jewelry during the holidays. On the IBJA website, the price of silver was 194415 rupees per kilogram, while in Delhi, the cost of one kilogram of silver has dropped to 2.20 lakh rupees.

On the Multi Commodity Exchange (MCX), precious metal prices experienced a sharp decline on Thursday following the start of futures trading. Prices for both metals plummeted: the cost of silver fell by more than 5,000 rupees, reaching a level of 2.03 lakh rupees per kilogram, while the futures gold rate dropped to 1.44 lakh rupees per 10 grams.

The drop in silver prices accelerated on Thursday, although a decrease had been observed over the past four days. On MCX, the price of silver with a December 4 expiry fell to 2,03,798 rupees, compared to closing at 2,09,168 rupees on the previous trading day. Thus, silver lost 5,370 rupees per kilogram in a single move.

Comparing current prices to the historical high, silver on MCX had previously exceeded the 4 lakh rupee mark for the first time at the end of January, peaking at 4,20,048 rupees. Based on current prices, silver is now available 2,16,250 rupees cheaper than its maximum value.

Not only silver, but also futures prices for gold sharply decreased. On MCX, 24-carat gold with a December 4 expiry fell to 1,44,311 rupees from an opening price on Thursday. Previously, on Wednesday, it traded at 1,46,079 rupees per 10 grams, representing a decrease of 1,768 rupees per 10 grams.

The decline in gold prices has continued since the beginning of this week. On Friday, the last trading day of last week, the futures price of gold was 1,47,918 rupees per 10 grams. As of the writing of this news on Thursday, the gold rate had fallen by 3,607 rupees. Furthermore, compared to September 30, when 10 grams of gold cost 1,49,036 rupees, it is now cheaper by 4,725 rupees per 10 grams.