Gold and silver prices drop sharply across major Indian markets

Gold and silver prices have dropped heavily across major cities from Delhi to Chennai. On Friday, silver prices fell by over 10,000 rupees and gold prices decreased by more than 4,000 rupees. This drop happened after new inflation numbers came out in the United States. US inflation is running above the central bank limit of 2 percent, leading to expectations that the Federal Reserve will raise interest rates further. If these rate hikes continue, precious metal prices may fall even more. On Friday, 10 grams of gold dropped by 4,000 rupees to 1,38,419 rupees on the Multi Commodity Exchange, while silver fell by over 10,000 rupees to 1,78,900 rupees per kilogram. Global markets also saw large declines. On Comex, gold dropped 3.63 percent to 3,884.90 dollars per ounce, and silver fell 6.20 percent to 49.14 dollars per ounce. Looking at weekly changes, silver on the MCX was at 1.95 lakh rupees on October 23 and dropped by 17,000 rupees to 1.78 lakh rupees per kilogram. Gold prices fell by 4,000 rupees over the week from 1.42 lakh rupees to 1.38 lakh rupees per 10 grams. Compared to record highs, silver reached 4.20 lakh rupees in January before falling by 2.42 lakh rupees, while gold dropped by 55,000 rupees from its 1.93 lakh rupee peak. In Delhi, 24-karat gold is priced at 1,38,440 rupees per 10 grams, and silver stands at 2 lakh rupees. According to ABP News, domestic futures trading on Friday also showed lower rates, with December delivery gold falling about 0.39 percent to 1,42,351 rupees per 10 grams and silver futures dropping about 0.27 percent to 1,88,943 rupees per kilogram. The Indian Bullion Association stated that 24-karat gold was 1,42,210 rupees, 22-karat gold was 1,30,359 rupees, and 18-karat gold was 1,06,691 rupees per 10 grams. Retail prices for 1 kilogram of silver in major cities like Delhi, Mumbai, Kolkata, and Chennai ranged between 2,14,900 and 2,15,000 rupees, seeing a slight drop of up to 100 rupees compared to the previous day.

Context

Precious metal prices in domestic Indian markets are heavily influenced by global trends, international currency values, and US economic policies. When US interest rates rise, investors often move money away from commodities like gold and silver into dollar-backed assets, causing market prices to fall. Buyers often track these daily fluctuations closely during festive seasons like Dhanteras and Diwali when demand for jewelry and bullion traditionally rises.