Major fall in gold and silver prices on the last day of the week; silver cheaper by ₹10,000.
The glitter of gold faded in the Delhi bullion market today. This is a major setback for investors, but it could also be an opportunity for buyers.
According to data from Good Returns, on Friday morning, the spot price of 24 carat gold fell sharply by ₹3650 to ₹1,46,010 per 10 grams.
Similarly, the rate of 22 carat gold also dropped by ₹3350 to ₹1,33,850 per 10 grams. 18 carat gold was also trading cheaper by ₹2740 at ₹1,09,540.
Along with gold, silver prices experienced a tsunami. In Delhi, the domestic spot price of silver plummeted by a whopping ₹10,000 to ₹2,50,000 per kg.
This decline reflects a reduction in industrial demand and pressure from global cues.
Heavy selling pressure was also seen in precious metals on the domestic futures market (MCX).
At 11:40 AM on MCX, gold futures were trading down by 1.89% or ₹2815 at ₹1,46,494 per 10 grams.
Meanwhile, silver futures were trading with a significant drop of 2.98% or ₹7073 at ₹2,30,499 per kg.
Apart from Delhi, gold prices also declined in other major cities of the country.
In Mumbai, Kolkata, Bengaluru, and Hyderabad, the price of 24 carat gold was ₹1,45,860 per 10 grams.
However, it was slightly more expensive in Chennai, selling at ₹1,48,040 per 10 grams. The price in Ahmedabad was ₹1,45,910.
International factors are the main reason behind this massive fall. The strengthening of the US dollar and the aggressive stance of the US Federal Reserve have put pressure on gold and silver.
The Federal Reserve has indicated an interest rate hike this year, which is negative news for a non-yielding asset like gold.
Market experts believe that, "When interest rates rise, investors shift from gold to treasury bonds for safe investment, which reduces the demand for gold and causes prices to fall."
This is why gold is heading for a close with a decline for the third consecutive week.
This major fall in precious metals is a matter of concern for investors, but for those who were waiting to buy for weddings or investment, this could be a golden opportunity. The impact of global cues may continue to be seen in the market.
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