Why Are Gold and Silver Prices So Volatile This Week?
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Synopsis
In the ever-changing landscape of precious metals, this week's fluctuations in gold and silver prices have drawn attention. Factors such as global trade dynamics, Federal Reserve policies, and currency strength play pivotal roles. Stay informed on how these elements shape the market.
Key Takeaways
- Gold prices closed at Rs 1,22,653 per 10 grams.
- Volatility was driven by global trade and currency strength.
- Silver ended the week at Rs 1,51,129 per kg.
- Experts suggest a volatile range for gold between Rs 1,20,000 and Rs 1,24,000.
- Market corrections were noted for both gold and silver.
New Delhi, Nov 22 (NationPress) The prices of gold and silver displayed significant volatility this week, influenced by indications of a slight improvement in global trade dynamics, diminishing hopes for a rate cut by the US Federal Reserve in December, and a robust dollar index.
As reported by the Indian Bullion and Jewellers Association (IBJA), the cost of 24-carat gold concluded at Rs 1,22,653 for 10 grams on Friday, reflecting an increase of Rs 221 compared to Monday's rate of Rs 1,22,432 per 10 grams. The price hit a weekly low of Rs 1,21,691 on Tuesday and peaked at Rs 1,23,388 on Wednesday.
The price of silver wrapped up the week at Rs 1,51,129 per kilogram, down Rs 3,804 from Monday's value of Rs 1,54,933 per 10 grams.
Commenting on the market, Ponmudi R, CEO of Enrich Money, stated, "Gold underwent a healthy correction this week yet retains a solid bullish framework. COMEX gold concluded at $4,079.5, while MCX gold settled near Rs 1,24,191, finding stable support on the multi-month rising trendline."
"Silver has also observed a pronounced but beneficial correction this week across both COMEX and MCX, although the overarching uptrend remains firmly intact," he added.
In the meantime, gold prices experienced a notable decline on Friday due to stronger-than-anticipated US September jobs data, which reduced expectations for an imminent Federal Reserve rate cut.
The gold futures contracts on the Multi-Commodity Exchange (MCX) were significantly in negative territory (as of 12:43 PM), as December futures fell by Rs 1,067, or 0.87%, to Rs 1,21,697 per 10 grams.
MCX Silver December contracts slipped by 2.17% or Rs 3,349 to Rs 1,50,802 per kg. Concurrently, the price for 10 grams of 24-carat gold was Rs 1,22,149, down from Rs 1,22,881 on Thursday, as per IBJA.
According to Jateen Trivedi of LKP Securities, "Gold exhibited significant volatility as Comex gold decreased by 1% to $4,035, a drop of $41, while MCX gold increased by Rs 300 due to a sharp depreciation of the rupee by nearly 1% from 88.70 to 89.60."
He further suggested that gold is likely to remain volatile within a range of Rs 1,20,000 to Rs 1,24,000.
Point of View
The fluctuations in gold and silver prices reflect deeper economic trends influenced by global trade dynamics and monetary policies. As these precious metals continue to show volatility, it is crucial for investors and consumers alike to stay informed and make strategic decisions. At NationPress, we remain committed to providing accurate and timely information to our readers.
NationPress
22/11/2025
Frequently Asked Questions
What factors influence gold and silver prices?
Gold and silver prices are influenced by global trade dynamics, monetary policies, currency strength, and economic data.
What was the gold price trend this week?
Gold prices showed significant volatility, closing at Rs 1,22,653 on Friday, with fluctuations between Rs 1,21,691 and Rs 1,23,388.
How did the US jobs data affect gold prices?
Stronger-than-expected US September jobs data led to a decline in gold prices, reducing expectations for a Federal Reserve rate cut.
What is the outlook for gold prices?
Gold is expected to remain volatile within a range of Rs 1,20,000 to Rs 1,24,000 in the near future.
Is silver following the same trend as gold?
Yes, silver prices have also seen significant corrections, although the overall uptrend remains intact.
