Silver Falls Rs 9,297 Per Kg, Gold Drops Rs 4,133

Silver falls sharply as gold also weakens in bullion and futures markets

Silver prices saw a steep fall on 28 September, with India Bullion and Jewellers Association data cited by Bhaskar showing 1 kilogram of silver becoming cheaper by 9,297 rupees and coming to 2.23 lakh rupees.

Gold also weakened sharply, with 10 grams of 24-carat gold falling by 4,133 rupees to 1.48 lakh rupees, according to the India Bullion and Jewellers Association, or IBJA.

The decline came after strong movement in gold and silver prices during the previous week, and that volatility continued at the start of this week, Aaj Tak reported.

IBJA rates show a steep fall in silver

According to Bhaskar’s report citing IBJA, the price of 1 kilogram of silver declined by 9,297 rupees to 2.23 lakh rupees on 28 September.

The same report said that 10 grams of 24-carat gold declined by 4,133 rupees to 1.48 lakh rupees.

Bhaskar reported that gold and silver prices fell on 28 September.

In the first 28 days of September, gold became cheaper by 8 thousand rupees and silver by 14 thousand rupees, according to the report.

Gold was at 1.56 lakh rupees per 10 grams on 31 August and has now come to 1.48 lakh rupees, Bhaskar reported.

Similarly, the price of 1 kilogram of silver fell from 2.37 lakh rupees to 2.23 lakh rupees, according to the same report.

The September movement is significant because it shows that the fall is not limited to one trading session, but has been visible over the first 28 days of the month, based on the figures cited by Bhaskar.

Experts believe that fluctuations may continue in gold and silver prices for now, Bhaskar reported.

Aaj Tak report cites silver at 2,23,192 rupees on IBJA.Com

Aaj Tak reported a sharp decline in gold and silver prices, saying rates fell from the Multi Commodity Exchange to the domestic market as soon as trading opened.

According to that report, the price of 10 grams of 24-carat gold fell by more than 4000 rupees, while the price of 1 kilogram of silver fell by more than 9000 rupees.

Aaj Tak reported that MCX silver futures with 4 December expiry came down to 2,27,197 rupees per kilogram from the previous close of 2,34,696 rupees.

On that basis, the futures price of silver fell by 7,499 rupees in one move, the report said.

In the domestic market, Aaj Tak cited the Indian Bullion Jewellers Association website IBJA.Com and said the price of 1 kilogram of silver fell sharply to 2,23,192 rupees from the previous close of 2,32,350 rupees.

According to that calculation, silver became cheaper by 9,158 rupees per kilogram.

The figures cited by Aaj Tak differ in exact levels from the Bhaskar report, but both reports point to a steep decline in silver prices using IBJA-linked data.

Gold also declines in futures and domestic markets

Aaj Tak reported that the fall was not limited to silver, and gold also became cheaper.

On MCX, 24-carat gold in futures trade came to 1,47,343 rupees, compared with 1,50,881 rupees per 10 grams at the previous close.

This meant that the 10 Gram 24 Karat Gold Rate on MCX fell by 3,538 rupees, according to Aaj Tak.

The report said the decline in the domestic market was larger than in futures trade, based on rates updated by the Indian Bullion Jewellers Association.

Aaj Tak reported that the 24-carat gold rate in the domestic market had closed at 1,52,113 rupees on the previous Friday and came to 1,48,040 rupees.

On that basis, gold became cheaper by 4,073 rupees in the domestic market, according to the report.

Bhaskar’s IBJA-linked figure placed 10 grams of 24-carat gold at 1.48 lakh rupees after a fall of 4,133 rupees.

ABP Live, in a separate report, said the price of 24-carat gold in the country was 1,51,470 rupees per 10 grams, while the price of silver was 2,35,070 rupees per kilogram.

ABP Live also reported that the price of 22-carat gold was 1,38,848 rupees per 10 grams.

The different reports cited different rate points and market references, including IBJA, IBJA.Com, MCX and countrywide gold and silver rates.

What buyers need to remember

Aaj Tak noted that the gold and silver prices updated by IBJA are uniform across the country.

However, the report also said that when jewellery is bought at bullion shops, 3% GST and making charges are applied, increasing the price paid by the buyer.

This matters for retail buyers because the displayed bullion rate is not the final jewellery purchase cost once GST and making charges are added.

Bhaskar also said buyers should keep two things in mind while buying gold from jewellers, though the source chunk does not provide those two points.

Aaj Tak included a note saying that investors should consult their experts before investing in gold-silver or gold-silver ETFs.

Market watchers expect more movement

ABP Live reported that experts believe gold and silver are likely to see fluctuations this week.

According to experts cited in the ABP Live report, US economic data, tensions in West Asia and crude oil prices will affect precious metal prices.

ABP Live said that because of a shorter trading week due to Mahatma Gandhi’s birth anniversary on 2 October (Friday), the market will watch US consumer confidence, gross domestic product and personal consumption expenditure inflation data.

The report added that eurozone inflation, manufacturing PMI, statements from Federal Reserve officials and US employment data will also guide the market.

Jatin Trivedi, commodity and currency research analyst at LKP Securities, said the market will watch US non-farm employment and unemployment data.

He said those numbers will be important for expectations around the Federal Reserve’s interest rate decision in October.

Pranav Mer, senior vice-president for commodity and currency research at JM Financial Services, said pressure on gold is not only from the currency market.

ABP Live reported that the 10-year Treasury yield in the US has reached its highest level since 2007.

The report also said the 30-year yield is near its highest level since 2004.

Higher long-term bond yields generally affect demand for investment options such as gold and silver, according to the ABP Live report.

Pranav Mer also said the crude oil market will remain an important factor.

Recent price context

ABP Live reported that 24-carat gold prices had recorded a fall of about 3.5% in the previous month.

The same report said 24-carat gold had increased by about 32% over the previous year.

ABP Live reported that gold prices had declined last Friday.

During that period, silver prices had risen slightly, the report said.

On the Multi Commodity Exchange, gold had closed at 1,50,700 rupees per 10 grams, while silver had closed at 2,35,000 rupees per kilogram, according to ABP Live.

Aaj Tak reported that gold and silver prices had seen strong volatility in the previous week.

That movement continued at the start of this week, according to the same report.

Bhaskar’s September comparison showed gold falling from 1.56 lakh rupees per 10 grams on 31 August to 1.48 lakh rupees, and silver falling from 2.37 lakh rupees per kilogram to 2.23 lakh rupees.

Those figures show the scale of the month’s decline in both metals as reported by Bhaskar, with silver seeing a 14 thousand rupees fall and gold seeing an 8 thousand rupees fall in the first 28 days of September.

Why the rate movement matters

Gold and silver prices are being tracked across domestic market rates and MCX futures because both reports show simultaneous declines in the metals.

For silver, Aaj Tak reported a fall in MCX futures of 7,499 rupees per kilogram and a domestic market fall of 9,158 rupees per kilogram.

For gold, Aaj Tak reported an MCX decline of 3,538 rupees per 10 grams and a domestic market decline of 4,073 rupees.

Bhaskar’s report also showed gold falling by 4,133 rupees per 10 grams and silver by 9,297 rupees per kilogram.

The fall is also relevant for jewellery buyers because IBJA-updated rates are uniform across the country, but jewellery purchases carry 3% GST and making charges at shops.

For investors, Aaj Tak’s note advised consulting experts before investing in gold-silver or gold-silver ETFs.

For market participants, ABP Live’s report pointed to US economic data, West Asia tensions, crude oil prices, Treasury yields, Federal Reserve commentary and employment data as factors expected to influence precious metal prices.

Experts cited by Bhaskar and ABP Live both indicated that fluctuations in gold and silver prices may continue.