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Kolkata: The prices of gold and silver, the two metals which were at the centre of a historic bull-run this year, is falling for the second day on the trot on Nov 18. The expectations of a rate cut by the US Federal Reserve, or US Fed, is ebbing, which could be leading to the depression in prices, analysts pointed out.
Monday witnessed a small dip in the price of the two precious metals. On Nov 18, the decline became more prominent. Data from MCX (Multi Commodity Exchange) show that gold prices fell 1.30% at 9:01 am and reached Rs 121,331 per 10 grams. In other words, it means that every 10 gms of gold became cheaper by Rs 1,596. The price of the other precious metal, silver, also dropped by Rs 2,798 and reached Rs 152,514 per kg.
The price of gold and silver in India depend on a variety of factors, both domestic and international. This round of decline in prices is also mirrored in the global market. Spot gold price fell 1.67% to trade at $4,012 per ounce. This decline is due to weakening expectations of a rate cut by the US Fed in December. Gold prices fell for the fourth consecutive session in the international market. Also, the concern on US tariffs could be slowly easing, thanks to a progress in the Indo-US bilateral trade deal. This could also have relaxed a bit of demand on gold.
CaratLane states that 22-carat gold (variety with which jewellery is usually made) was available at Rs 11,645 per gram on November 18. According to its website, gold fell by Rs 1,410 to Rs 122,020 per 10 grams in the retail market. Silver dropped Rs 2,870 to trade at Rs 153,250 per kg.
Significantly, the US Federal government is in a shutdown mode and it ended after a record 43 days. One of the results has been delay in the release of key economic data which triggered uncertainty about the state of the world's largest economy. The shutdown is now over and investors are waiting for key US data this week. The market is cautious in the absence of any positive fundamental trigger, leading to a fall in prices of both metals.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, precious metals, commodity, REITs, INVITs, any form of alternative investment instruments and crypto assets.)
