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Gold, Silver Prices Plunge: Festival Buyers Pause
29 Sep
Summary
- Silver futures dropped sharply, impacting upcoming festival purchases.
- Gold futures also saw a significant decline on the MCX.
- Buyers hesitate despite lower prices, awaiting market stability.
Gold and silver prices saw a significant drop on Monday, prompting potential buyers to delay purchases for upcoming festivals and weddings. This downturn occurred as silver futures for September delivery plummeted by ₹6,661 to ₹2,28,035 per kg on the MCX. Concurrently, gold futures for October delivery declined by ₹3,214, reaching ₹147,667 per 10 grams.
Industry experts observe that while the price correction has made gold and silver more affordable, customers are hesitant to buy. Jewellers point out that buying activity typically increases in a rising market, not a falling one, due to concerns about further price drops. Consequently, festive season buying is expected to remain subdued unless prices begin to stabilize or show signs of recovery.
The market selloff was attributed to a strengthening US dollar, rising US yields, and geopolitical uncertainties. Spot gold was trading approximately 2% lower around $4,185 per ounce, while the US 10-year Treasury yield climbed to around 5.22%, exerting pressure on non-yielding assets like gold.
