Editor’s Note
After a sharp decline, domestic gold and silver futures have rebounded strongly, with gold rising by ₹1,700 and silver by over ₹6,100. This recovery highlights the market’s volatility and ongoing investor interest in precious metals.
Following a sharp decline in the previous session, a strong recovery has been recorded in the prices of gold and silver in the domestic futures market (MCX). April futures gold surged by ₹1,700 to reach ₹1,53,199 per 10 grams, while silver saw an increase of over ₹6,100.
Activity in gold and silver contracts on the Multi Commodity Exchange has increased significantly. According to market data, the gold futures contract for April 2024 has reached ₹1,53,199 per 10 grams. This rally is due to short covering after the sell-off in the previous session, and even more volatility was observed in the silver market. March futures silver, which had fallen considerably in the previous session, reached ₹2,37,613 per kilogram on Friday. According to market experts, this price correction is a result of global cues and a sudden change in domestic demand.
Considering the trends in the spot and futures markets, prices for gold of various purities have also changed. 24-carat gold, considered the purest, remains around ₹1,53,199 per 10 grams according to futures market trends. The price of 22-carat gold, most used in jewelry making, was recorded at ₹1,41,350 per 10 grams. Additionally, 18-carat gold is priced at ₹1,15,650 per 10 grams. In the retail market, local taxes, GST, and making charges are applied separately to these prices, which may cause slight variations in the final price across different cities.
Changes in the prices of precious metals in the global market have had a direct impact on the Indian market. In the international market, gold futures for April delivery are trading at around $4,944 per ounce. Meanwhile, international spot silver has recorded a gain of over 2%. In previous sessions, silver had seen a historic decline of nearly 11%, after which signs of stability are now emerging in the market. The impact of the strength of the US dollar and changes in bond yields is also clearly visible on global gold prices.
According to market experts, several global and domestic reasons are responsible for such large fluctuations in gold and silver prices. In the previous session, investors had booked profits in gold to meet cash needs, leading to a decline in prices. However, as prices reached lower levels, buyers saw it as an opportunity and started building positions again. Additionally, global geopolitical tensions and uncertainty surrounding central banks’ monetary policies are also affecting the demand for gold as a safe investment.
Trading in gold and silver on MCX occurs through specific contracts, and the highest volume is currently being seen in the April and June gold contracts. In the case of silver, the March futures contract is nearing expiry, which has accelerated the rollover and short covering process. According to market data, if stability persists in global markets, the next resistance level for gold on MCX could be seen around ₹1,54,000. Meanwhile, the level of ₹2,42,000 per kilogram remains a crucial technical point for silver. Changes in these prices are possible at any time as they depend entirely on market demand and supply.