Gold and Silver Prices Crash Sharply Across Domestic and Futures Markets

Precious metal prices have dropped sharply in both futures and domestic markets, with silver falling far below its record peak. On the Multi Commodity Exchange, December silver futures closed at 1,76,543 rupees per kilogram on Friday, dropping 8,244 rupees from its November 6 close of 1,84,787 rupees. Compared to its all-time high of 4,20,048 rupees reached in January, silver has crashed by 2,43,505 rupees per kilo. Gold has also seen major declines on the exchange. The December gold futures contract fell by 5,417 rupees over a week, closing at 1,36,750 rupees per 10 grams on Friday compared to 1,42,167 rupees on November 6.

Domestic Market Drop

In the local bullion market, prices have fallen across various purities. According to the Indian Bullion Jewellers Association website, 24-karat gold dropped by 5,643 rupees in just four days of trading, moving from 1,41,452 rupees down to 1,35,809 rupees per 10 grams. One kilogram of silver in the domestic market dropped by 4,868 rupees to 1,78,000 rupees. Other purities have also declined significantly. The current domestic rates without GST and making charges stand at 1,32,550 rupees for 22-karat gold, 1,20,870 rupees for 20-karat gold, 1,10,010 rupees for 18-karat gold, and 87,600 rupees for 14-karat gold per 10 grams. Buyers must pay an extra three percent GST and making charges at jewelry stores.

International Factors

Internationally, gold prices fell to about 3,880 dollars per ounce after dropping about three percent in the previous session, reaching a 13-month low. India TV Hindi reports that the primary trigger for this decline is persistent high inflation in the United States. Because inflation figures came in higher than expected, markets fear that the US Federal Reserve may raise interest rates, strengthening the US dollar and bond yields and reducing the appeal of non-interest-bearing assets like gold.

Context

Precious metal prices in India are heavily influenced by global trends, international currency movements, and domestic festive or wedding season demand. When overseas bullion rates fall or the US dollar strengthens, local gold and silver prices generally follow the downward trend.

City Rates

On November 13, 24-karat gold stood at 1,39,940 rupees in Delhi and 1,39,790 rupees in Mumbai, Kolkata, Chennai, Bengaluru, and Pune.