Why Are Gold Prices Declining While Silver Rises?
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Synopsis
On September 2, 2023, the prices of gold and silver fluctuated in contrasting directions. While silver enjoyed a slight increase, 24-carat gold prices experienced a decline, leaving investors questioning the market dynamics. Understanding these trends can provide valuable insights into precious metal investments.
Key Takeaways
- 24-carat gold price decreased by Rs 69 to Rs 1,04,424 per 10 grams.
- Silver prices increased by Rs 33, reaching Rs 1,22,833 per kg.
- Internationally, gold rose to $3,555.82 per ounce.
- Market trends indicate the importance of economic data for future price movements.
- Profit booking and strong rupee are influencing gold prices.
New Delhi, Sep 2 (NationPress) The prices of silver and gold demonstrated contrasting movements on Tuesday. While silver experienced a slight uptick, the price of 24-carat gold saw a decline. The price of 24-carat gold decreased by Rs 69 in the last 24 hours, settling at Rs 1,04,424 per 10 grams, down from Rs 1,04,493 per 10 grams previously, as reported by the India Bullion and Jewellers Association (IBJA).
Meanwhile, 18-carat gold dropped to Rs 78,318 per 10 grams, and 22-carat gold fell to Rs 95,652 per 10 grams.
Conversely, silver prices increased by Rs 33, reaching Rs 1,22,833 per kg, up from the last recorded Rs 1,22,800 per kg.
On the Multi-Commodity Exchange (MCX), the trends for gold and silver were mixed. The October 3, 2025 gold futures contract rose by 0.30 percent to Rs 1,05,100, while the December 5, 2025 silver futures contract dipped by 0.12 percent to Rs 1,24,509.
On the international front, both metals saw gains. On Comex, gold climbed 1.13 percent to $3,555.82 per ounce, while silver advanced by 2.00 percent to $41.51 per ounce.
"Gold exhibited volatility with minor gains at $3481, experiencing a wider range between $3470 and $3500 as profit booking occurred in higher zones. On MCX, gold reached highs of Rs 1,05,340 before retreating toward Rs 1,04,500 due to profit booking, primarily influenced by rupee strength and slight resistance near the $3500 mark on COMEX," stated Jateen Trivedi of LKP Securities.
This week’s US economic data, including ISM services, trade balance, and non-farm payrolls, will be crucial in shaping market sentiment, as expectations regarding Fed policy remain pivotal to the outlook, he added.
A sustained breach above $3510 on COMEX or Rs 1,05,500 on MCX could further extend the rally, while $3450/$104,000 would serve as immediate support levels, Trivedi noted.
Point of View
I believe it is essential to stay informed about the fluctuations in precious metal prices. The current trends in gold and silver reflect broader market dynamics, influenced by various economic indicators. Our commitment is to provide accurate and timely information to help our readers make informed financial decisions.
NationPress
02/09/2025
Frequently Asked Questions
Why did gold prices decline?
Gold prices declined due to profit booking and a stronger rupee, which influenced market dynamics.
What factors affect silver prices?
Silver prices can be influenced by industrial demand, market sentiment, and investor behavior.
How are gold and silver prices determined?
Prices are determined by supply and demand dynamics in global markets, along with geopolitical factors.
What are the future trends for gold?
Future trends depend on economic data, Fed policies, and market sentiment, which are crucial for price movements.
Is silver a good investment?
Silver can be a good investment, especially when diversifying portfolios, but it carries its own risks.
