Gold, silver slide as buyers wait for prices to stabilise
Gold and silver prices fell sharply on Monday, leading potential buyers to postpone purchases for upcoming festivals. Silver futures dropped significantly, while gold futures also experienced a notable decline on the MCX. The current correction in prices has made buying more affordable, but customers remain hesitant. Jewellers indicate that purchases typically happen in a rising market rather…
On Monday, gold and silver prices experienced a significant decline, causing prospective buyers to postpone acquiring the precious metals in preparation for upcoming festivals and weddings, anticipating further price drops. Silver futures for September delivery dropped by ₹6,661 to ₹2,28,035 per kilogram on the MCX, while gold futures for October delivery slipped 3,214 to ₹1,47,667 per 10 grams.
Despite the correction offering improved affordability, jewellers indicated that buyers are unlikely to make a swift move until indications of stabilization or recovery in gold prices emerge. Generally, purchases occur during upward market trends, not in a declining market due to apprehension of further decline. Surendra Mehta, secretary of the India Bullion & Jewellers Association, noted that unless prices begin to rise, festive season buying will not be stimulated.
The market downturn was fueled by the strengthening of the US dollar, increased US yields, and uncertainty surrounding the US-Iran conflict. Spot gold was trading near $4,185 an ounce, marking a decline of over 2%, while the US 10-year Treasury yield rose to approximately 5.22%, exerting additional pressure on non-yielding assets.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
