Why Are Gold Prices Dropping Over Rs 3,000 Per 10 Grams?
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Synopsis
The gold market is witnessing a significant downturn as prices fall sharply due to weak global cues and optimism surrounding US-China trade talks. With 24-carat gold now priced at Rs 1,18,043, investors are keenly watching upcoming shifts in market sentiment.
Key Takeaways
- Gold prices have slipped by over Rs 3,000 per 10 grams.
- 24-carat gold is now priced at Rs 1,18,043.
- Weak global cues and US-China trade talks are influencing market sentiment.
- Silver prices have also decreased significantly, down to Rs 1,41,896 per kg.
- Attention is on the US Federal Reserve's decision regarding interest rates.
Mumbai, Oct 28 (NationPress) The decline in gold prices has persisted, with the rates nearing Rs 1.18 lakh per 10 grams, influenced by weak global signals and a revived sense of optimism regarding trade discussions between the US and China.
The India Bullion and Jewellers Association (IBJA) reported that the price for 24-carat gold fell by Rs 3,034 to Rs 1,18,043, down from Rs 1,21,077 in the previous trading session. Likewise, the cost of 22-carat gold decreased to Rs 1,08,127 per 10 grams from Rs 1,10,907, while 18-carat gold dropped to Rs 88,532 from Rs 90,809.
The prices of silver also saw a significant fall, declining by Rs 3,135 to Rs 1,41,896 per kg, down from Rs 1,45,031 previously. IBJA updates gold and silver prices twice daily — at noon and at 5 p.m.
According to SAMCO Securities, "After a remarkable surge from Rs 110,000 to Rs 170,000 per kg, silver has established a classic Head and Shoulders pattern, indicating potential exhaustion following a sharp uptrend. Prices have already dipped below the neckline, with current levels around Rs 1,40,000 aligning closely with the 50 percent Fibonacci retracement of the prior rally."
Futures trading on the Multi-Commodity Exchange (MCX) reflected the downturn in the spot market. The December 5, 2025 gold contract fell 1.87 percent to Rs 1,18,700, while the silver contract for the same expiry declined 0.74 percent to Rs 1,42,301.
Gold showed further weakness, dropping another Rs 2,500 to Rs 1,18,450 per 10 grams as market sentiment soured with the renewed optimism around a prospective US-China trade deal. Attention now turns to the US Federal Reserve's interest rate decision scheduled for Wednesday night, which is expected to influence the next phase of the trend. Gold remains under pressure, with critical support between Rs 1,16,500 and Rs 1,18,000, while resistance is anticipated near Rs 1,21,000 and Rs 1,22,000, according to Jateen Trivedi of LKP Securities.
On the international front, gold prices decreased by 1.98 percent to $3,939 per ounce on Comex, while silver traded 0.52 percent lower at $46.53 per ounce.
Point of View
The ongoing decline in gold prices amidst fluctuating global sentiments highlights the interconnectedness of international trade and domestic markets. As we assess the future trajectory of these prices, it remains critical for investors to remain vigilant and informed about global developments.
NationPress
01/11/2025
Frequently Asked Questions
What caused the recent drop in gold prices?
The recent decline in gold prices can be attributed to weak global market signals and renewed optimism surrounding trade talks between the US and China.
How much has the price of gold fallen?
Gold prices have fallen by over Rs 3,000, with 24-carat gold currently priced at Rs 1,18,043 per 10 grams.
What are the current prices of silver?
Silver prices have also decreased sharply, now trading at Rs 1,41,896 per kg.
What technical patterns are observed in the silver market?
Silver has formed a Head and Shoulders pattern, indicating a potential reversal after a significant price rally.
How are futures contracts responding to current market conditions?
Futures contracts on the Multi-Commodity Exchange reflect the weakness seen in the spot market.
