On October 16, the silver and gold prices displayed divergent trends across the central Indian markets. While gold saw an occasional price dip, silver prices remained relatively steady, with a few minor fluctuations.
These shifts reflect a broader global shift in market dynamics, which are influenced mainly by macroeconomic information, central bank activity, and geopolitical developments.
Also Read: Market Outlook and Trade Setup for October 16, 2024: Key Indicators and Open Interest Data
Gold Prices Witness Minor Decline
As of October 16, the price of gold 24-carat in India is currently Rs77,563 for 10 grams, a slight reduction from the Rs77,833 for 10 grams reported on October 15.
In the last week, the cost of gold, which is 24-carat, has decreased by 1.26%, and the monthly decrease is 5.79%. The current price is Rs71113 for 10 grams, a reduction of 200 rupees from the previous day.
The decline in gold over the last week has aligned with global market trends. A drop in US Treasury yields has temporarily supported the precious metal.
More general market trends continue to impact the performance of gold. Global demand, fluctuations in currency, and even government regulations all play a part in these price changes.
Gold Prices Across Major Cities
In the most important Indian cities, rates for gold have been adjusting slightly. In Delhi, the price of gold in 24-carat today is Rs77,563 a gram lower than the Rs77,833 price earlier in the day. On October 10, the price was 76,853; minor changes were seen in the last week.
In Chennai, the gold market was in line with the same trend, and 24-carat gold was sold at Rs77,411 for 10 grams, slightly less than the price of Rs77,681 on October 15. One week ago, when the price was Rs76.701, it indicated a moderate but modest increase over a week.
In Mumbai, today’s gold price is Rs77,417/10 grams, slightly less than yesterday’s rate of Rs77,687. On October 10, the price was Rs76,707, showing slight fluctuations throughout the week.
Kolkata also experienced a slight drop in the price of gold, and today’s rate is Rs77,415 for 10 grams, compared to a rate of Rs77,685 on October 15. The rate for the week ending October 10 was Rs76,705.
Silver Prices Hold Steady
The price of silver has remained constant across the major markets. Today, the price of silver in Delhi is Rs100,000 per kilogram, unchanged from October 15. The price last week was Rs97,000 per kilogram, representing a weekly rise of Rs3,000.
In Chennai, silver prices were at 105,600 per kilo today, the same as yesterday. The cost was Rs102,600 per kilogram one week ago, on October 10.
Mumbai also maintained stability in the silver prices at the current rate of Rs99,200 per kilogram. This is less than the Rs99,300 price on October 15. The last week’s price on October 10 was Rs96,300, representing a modest increase in weekly prices.
In Kolkata, the price of silver remained steady at Rs 100,800 per kilo, which remained the same as yesterday’s. However, the price last week of October 10 was Rs97800 per kilogram, showing an upward trend.
Global Influences on Gold and Silver
Gold prices in the global market have been heavily affected by the movements of the US dollar and treasury yields. On October 16, the spot gold price was trading at $2,663 for an ounce, an increase of 0.5% over the day.
The increase is due to a decrease in 10-year US Treasury yields, which dropped for the third straight session. Lower yields and a weaker dollar have created a greater demand for gold investors.
In the MCX, the December gold futures were traded 0.12% higher at Rs76451 for 10 grams. The silver December futures experienced an improvement by trading at Rs91691 per kilogram, up 0.074%.
Geopolitical issues continue to affect the price of precious metals. Although fears of potential conflicts within the Middle East have eased somewhat, and with Israel likely to refrain from the attack on Iranian nuclear and oil infrastructure, it is still aware.
Gold’s outlook depends on future US economic indicators, including industrial production, retail sales, and jobless claims schedule, which used to be released later in the week.
The indicators are expected to play an essential part in shaping investors’ expectations regarding Federal Reserve interest rate decisions, which will, in turn, affect the price of silver and gold.
Outlook for Precious Metals
The days ahead are crucial for the market participants in the silver and gold markets when investors will be monitoring the macroeconomic data of the world.
US manufacturing and retail sales figures and first jobless claims figures are expected to offer new insights into the Fed Reserve’s interest rates. This critical aspect will impact the price direction for gold.
As markets digest these numbers and geopolitical tensions are at the top of the agenda, gold is likely to trade between Rs75,200-R77,000 per 10 grams over the short term, with a temporary support of Rs75,700.
Similar to silver prices, they will likely see small fluctuations due to global factors that affect market mood.
Also Read: Top Stock Picks for October 16 by SMJ (Stock Market Journal)
