Stories
Gold Drops by ’3,500, Silver by ’5,000; Is Now the Best Time to Buy?
- •Gold prices significantly dropped by ’3,500 for 24-carat and ’3,200 for 22-carat before Dussehra and Diwali.
- •Silver prices also fell by ’5,000 per kilogram due to decreased industrial demand.
- •Precious metals are under pressure in domestic and international markets despite festive demand.
- •The upcoming US Federal Reserve meeting on October 28 is a key factor influencing price movements.
- •Uncertainty regarding interest rate hikes by the Fed has led to caution and profit-taking in gold.
Key Questions Answered
Precious metals face pressure in domestic and international bullion markets as large institutional investors turn cautious ahead of the US Federal Reserve's monetary policy meeting on October 28. Additionally, a decrease in industrial demand contributed to a sharp drop in silver prices.
This week, 24-carat gold fell by as much as 3,500 per 10 grams, while 22-carat gold dropped by up to 3,200. Meanwhile, the price of silver experienced an even steeper decline, falling directly by 5,000 per kilogram due to lower industrial demand.
The probability of an interest rate hike fell significantly to only 22 percent after recent US inflation figures came in lower than expected. Earlier, expectations for a rate hike at the upcoming October 28 meeting were near 70 percent.
