New Delhi: For quite some time now, the Indian bullion market has been witnessing a state of volatility in gold and silver prices. This has created a sense of indecision among customers regarding their purchasing decisions. Speaking of recent events, the prices of gold and silver have taken everyone by surprise.
According to some experts, the underlying cause for this trend is the prevailing tension in the Middle East. Typically, whenever geopolitical tensions have flared up on a global scale, the prices of precious metals have tended to rise. However, this time around—amidst the volatile situation in the Middle East—jewellery prices are actually falling. Over the past week alone, silver has become cheaper by approximately ₹32,000, while gold prices have dropped by about ₹13,000. This has brought smiles to the faces of customers.
Silver Prices Plummet
The Indian bullion market has been witnessing a downward trend in prices since last week. Over the span of five trading days, silver prices have experienced a sharp decline. On March 13, the price of silver futures (with a May 5 expiry) on the Multi Commodity Exchange stood at ₹259,435 per kilogram; by Friday—the final trading day of the past week—it had fallen to ₹223,305.
This translates to a price reduction of ₹36,103. However, the rate of decline slowed slightly towards the end, and the metal eventually closed at ₹227,470. Consequently, over the course of the week, silver prices have tumbled by a total of ₹31,965. The continuously falling market price of silver is now significantly lower than its recent peak levels. In contrast, silver futures prices had crossed the ₹400,000 per kilogram mark for the first time this year on January 29, reaching an all-time high of ₹420,048.
Gold Rates Continue to Decline
In addition to silver, gold rates are also witnessing a continuous downward trend. This has brought considerable joy to customers. On the MCX, during the final trading session of the past week—Friday—gold with an April 2nd expiry closed at ₹144,825 per 10 grams, registering a marginal gain. However, if one calculates the decline based on the losses incurred over the remaining four trading days, gold prices plummeted by ₹13,641 per 10 grams.
On March 13, the MCX gold rate stood at ₹158,466 per 10 grams, which subsequently dropped to ₹144,825 by Friday. Much like silver, gold has also become significantly cheaper compared to the high levels recorded on January 29. Furthermore, looking beyond the MCX to observe the price movements of gold and silver in the domestic market, data from the Indian Bullion Jewellers Association’s website (IBJA.com) indicates that rates for both precious metals have slipped there as well.
