October 29, 2024 – Gold and silver prices edged down in early trade on Tuesday, reflecting the market’s restrained demand amidst the ongoing festive season.
This softening comes as Indian consumers, traditionally keen on purchasing precious metals during Dhanteras and Diwali, are met with slightly higher price points driven by global factors.
Notably, gold of 24K purity dropped by Rs 490 per gram, bringing it to Rs 7,996.3, while 22K gold saw a Rs 450 decrease, settling at Rs 7,331.3 per gram. Silver prices also took a minor dip, currently trading at Rs 101,000 per kilogram.
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Gold Prices in Key Indian Cities
In Delhi, gold recorded a decrease from the previous day, with 24K purity valued at Rs 79,963 per 10 grams, down from Rs 80,463 the day before. Over the past week, gold prices in Delhi have largely trended downward, with a recorded price of Rs 79,803 on October 23.
Chennai’s gold prices similarly declined, with 24K purity now priced at Rs 79,811 per 10 grams. This decline in price follows the pattern observed nationwide and is expected to influence local market sentiment as shoppers assess the slight price relief in anticipation of Dhanteras purchases.
In Mumbai, gold maintained a similar drop, trading at Rs 79,817 per 10 grams for 24K purity, a reduction from the prior day’s price of Rs 80,317. The weekly price in Mumbai shows a slight rise and fall, with prices previously standing at Rs 79,657 on October 23.
Silver Prices in Major Markets
Silver, which often mirrors gold in market movement, recorded modest declines across major cities. In Delhi, silver is trading at Rs 101,000 per kilogram, down by Rs 100 from the previous day. This slight decrease follows a similar trend last week, where silver was priced at Rs 105,200 per kilogram.
Chennai’s silver prices also saw a dip, now standing at Rs 109,600 per kilogram, while the prior week’s rate was notably higher at Rs 112,800. Mumbai recorded silver trading at Rs 100,300 per kilogram, reflecting a decrease from Rs 104,500 just a week ago.
MCX Futures Show Upward Movement Amid Global Influences
In the Multi Commodity Exchange (MCX) market, both gold and silver futures showed slight gains, driven by investor sentiments around global economic factors.
Gold December 2024 futures were trading at Rs 78,845 per 10 grams, an increase of 0.355%, indicating optimism among investors regarding the metal’s value.
Silver March 2025 futures displayed a 0.231% uptick, trading at Rs 100,041 per kilogram, hinting at possible recovery in silver prices in response to broader economic factors.
Factors Influencing the Precious Metals Market
The current declines in gold and silver prices can be attributed to a combination of global and domestic influences.
Geopolitical tensions, fluctuations in the US dollar, and changes in global demand for precious metals significantly drive prices.
Factors such as currency volatility, interest rates, and government regulations surrounding gold imports impact the Indian market.
The US labor market data, a key economic indicator, has exerted an influence on precious metal prices globally, causing ripple effects in the Indian market.
The recent price volatility may also be tied to heightened geopolitical concerns and investor actions, both of which have contributed to fluctuations in commodity trading.
Anticipation in the Festive Market
With Dhanteras just around the corner, the softening of gold and silver prices might provide a boost in demand among Indian consumers.
Traditionally seen as an auspicious time to buy gold, Dhanteras often sparks significant market activity in India’s precious metals sector.
Industry insiders anticipate that the minor price relief will be short-lived, and the overall trend may lean towards stability or gradual increases as the festive season peaks.
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