Stories
Gold price drops below Rs 1.5 lakh, silver falls by 6.4 percent
- •Gold and silver prices are experiencing significant volatility due to escalating geopolitical tensions in West Asia and crude oil prices reaching 110 dollars per barrel.
- •On the Multi Commodity Exchange, December gold futures fell by 2.4 percent to settle at Rs 1.47 lakh per 10 grams, while silver futures dropped by 6.4 percent to Rs 2.11 lakh per kg.
- •Investors are closely watching key global economic indicators including China economic data, US housing and inflation figures, and PMI data from major economies.
- •US Federal Reserve interest rate decisions, bond yield fluctuations, and rupee exchange rate movements will heavily influence future precious metal prices.
Key Questions Answered
On the Multi Commodity Exchange (MCX), gold futures fell by Rs 3,581 to settle at Rs 1.47 lakh per 10 grams, while silver futures dropped by Rs 14,568 to reach Rs 2.11 lakh per kg. Global market trends, economic uncertainties, and shifting interest rate prospects heavily influenced these domestic price declines.
Escalating geopolitical tensions around West Asia and the Strait of Hormuz, combined with Brent crude oil reaching $110 per barrel, have heightened inflation and fuel cost concerns. If crude oil prices remain elevated, rising manufacturing and transportation costs could potentially curb major surges in gold prices.
Investors are closely monitoring China's economic data to gauge industrial metal demand, along with US housing data, consumer sentiment, and inflation expectations. Additionally, PMI figures from India, the US, and the UK, alongside the US Federal Reserve's interest rate decisions, will significantly influence future market trends.
