Gold prices continued their downward trend on the Multi Commodity Exchange (MCX) on Friday, falling by Rs 1,500 per 10 grams. The yellow metal was trading at Rs 71,000 per 10 grams, down from the previous close of Rs 72,500. Silver also witnessed a slide, dropping by Rs 2,000 to Rs 85,000 per kilogram.
Reasons Behind the Drop
The decline in gold prices is attributed to a stronger US dollar and rising bond yields, which have dampened the appeal of the precious metal as an investment. Additionally, expectations of further interest rate hikes by the US Federal Reserve have weighed on gold's performance globally.
City-Wise Gold Rates
Here are the gold rates (per 10 grams, 24K) in major Indian cities:
- Delhi: Rs 71,200
- Mumbai: Rs 71,000
- Chennai: Rs 71,300
- Kolkata: Rs 71,100
City-Wise Silver Rates
Silver rates (per kilogram) in major cities:
- Delhi: Rs 85,200
- Mumbai: Rs 85,000
- Chennai: Rs 85,400
- Kolkata: Rs 85,100
Market Outlook
Analysts expect gold prices to remain volatile in the near term, influenced by global economic data and monetary policy decisions. Investors are advised to monitor international cues and domestic demand trends before making investment decisions. The domestic market also saw a dip in demand due to the ongoing wedding season slowdown, which further pressured prices.
Silver, often considered a more volatile asset, mirrored gold's decline. Industrial demand for silver has been sluggish, adding to the bearish sentiment. However, some analysts believe that the current correction could be a buying opportunity for long-term investors.
