Gold and silver prices have witnessed a significant downturn, with gold falling by ₹1,836 and silver by ₹4,417 in a single day, while over the past seven days, gold prices have plummeted by ₹9,356, while silver has seen a massive drop of ₹31,067. This comes after gold reached its all-time high of ₹1,30,874 per 10 grams on October 17.
According to the India Bullion and Jewelers Association (IBJA), on October 24, 24-carat. Gold was priced at ₹1,21,518 per 10 grams, down from ₹1,23,354 on Thursday. Silver, meanwhile, traded at ₹1,47,033 per kilogram, a substantial decrease from ₹1,51,450 the previous day. Silver is now ₹31,067 cheaper than its peak.
Reasons for the Price Drop
Several factors contribute to this sharp decline, while the end of seasonal buying in India, particularly after festivals like Diwali, has led to a decrease in demand. On top of that, easing global tensions have reduced the appeal of gold and silver as 'safe-haven' assets, while profit-taking by investors after a strong rally and 'overbought' signals from technical indicators like the Relative Strength Index (RSI) also prompted selling.
Yearly Gains Remain Strong
Despite the recent fall, both gold and silver have seen substantial gains this year. Gold prices have risen by ₹45,356 per 10 grams, and silver has increased by ₹61,016 per kilogram since December 31, 2024.
Key Considerations When Buying Gold
Consumers are advised to purchase only BIS-hallmarked certified gold and cross-check prices from multiple sources like the IBJA website. Variations in gold prices across cities are influenced by transportation costs, regional demand, local jewelry associations, and the jeweler's acquisition cost.
