Editor’s Note
Global precious metal markets saw a divergence today, with gold and silver falling internationally while domestic prices on the MCX continued their upward trend. This article provides the latest rates and context for this market movement.
Gold and silver prices declined in the international markets. Silver fell by more than 7%, while gold slipped by over 1%, although gold is still holding above the $5,000 level. Meanwhile, in the domestic market, prices continue to rise on the MCX. Let’s find out the domestic market rates.
Due to profit-taking, a sharp decline was recorded in gold and silver prices in the international market. After reaching record highs, silver prices fell by more than 7 percent, while gold also weakened. On COMEX, the price of gold fell by 1.16 percent to $5,023.60 per ounce. However, despite the decline, gold remains above the crucial $5,000 level.
Meanwhile, on COMEX, the price of silver fell by 6.41 percent to $108.095 per ounce. In the previous session, silver prices had reached a record level when they crossed $117.71 per ounce, but after that, heavy selling was seen.
A sharp surge was seen in gold and silver prices on the Multi Commodity Exchange (MCX). Due to the rally in the international market, both metals extended their record-breaking rally.
On MCX, the price of gold opened at ₹1,58,674 per 10 grams with a gain of 1.68 percent, while its closing price in the previous trading session was ₹1,56,037 per 10 grams. During trading, the price of gold rose to a high of ₹1,59,820 per 10 grams.
Meanwhile, on MCX, the price of silver opened at ₹3,39,824 per kilogram with a gain of 1.53 percent, while its price in the previous session was ₹3,34,699 per kilogram. During trading, the price of silver rose by ₹22,010, or 6.58 percent, to ₹3,56,709 per kilogram. Silver also touched its all-time high of ₹3,59,800 per kilogram.
In India, the price of 24-carat gold has increased to ₹1,61,960 per 10 grams. Meanwhile, the price of one kilogram of silver has reached a new level of ₹3,60,100.
In Delhi, the price of 24-carat gold was recorded at ₹1,62,110 per 10 grams and the price of 22-carat gold at ₹1,48,610 per 10 grams.
In Mumbai, the price of 22-carat gold was ₹1,48,460 per 10 grams, while in Patna, the price of 18-carat gold was recorded at ₹1,21,520 per 10 grams.
In addition, the price of one kilogram of silver in Delhi, Mumbai, and Patna was also ₹3,60,100.
According to experts, gold prices have risen by about 17 percent so far this year. The main reasons for this are investors moving away from government bonds and currencies, a weak US dollar, and geopolitical risks. The market is calling this a ‘debasement trade’, where investors are turning to safe investment options due to fears of currency devaluation. This means that when investors believe that a country’s currency may depreciate or its purchasing power is weakening, they start investing in gold, silver, and other real assets to protect their capital.
Experts believe that in the coming times, further surges in gold and silver prices may be seen. Amid rising geopolitical tensions and global uncertainties, investors are viewing gold and silver as insurance, i.e., safe investment options. Whenever uncertainty increases in the market, investors’ inclination shifts from risky assets (such as the stock market) to safe assets like gold and silver. This is why demand for them increases rapidly during times of crisis.
Analysts believe that if uncertainty in the global economy, weakness in the dollar, and geopolitical tensions persist, further gains in gold and silver prices may be seen. However, declines are also possible in between due to profit-taking and a strengthening dollar.