Gold prices experienced the biggest fall of the year, with a staggering drop of approximately 6 percent, or Rs 7,700, in just six minutes on Wednesday evening at the Multi Commodity Exchange (MCX). This sharp decline is attributed to a decrease in geopolitical and trade tensions, reduced festive demand, and profit-booking by investors.
Gold's Steepest Fall of the Year
On Wednesday, gold prices on the MCX closed at Rs 1,28,271 per 10 grams. However, within minutes of the market opening in the second half, prices plummeted to Rs 1,20,575. This marks a direct fall of Rs 7,696. By 5:40 PM, gold was trading at Rs 1,21,198 per 10 grams, down by Rs 7,073, while notably, gold is now nearly 9 percent, or about Rs 12,000, cheaper than its lifetime high of Rs 1,32,294 recorded last Friday.
Significant Drop in Silver Prices Also
Mirroring gold's trajectory, silver prices also witnessed a substantial decline, while on Wednesday, silver fell by up to 4 percent in the domestic futures market, pushing its prices below Rs 1,44,000. Data indicates that silver prices dropped by Rs 6,508 to Rs 1,43,819 during the trading session, compared to its previous close of Rs 1,50,327. Silver is now approximately 16 percent, or over Rs 26,596 per kilogram, cheaper than its lifetime high of Rs 1,70,415, which was also reached last Friday.
Further Decline Expected
Experts believe that gold prices may fall further. According to Anuj Gupta, Director of Y Wealth Management, the easing of geopolitical tensions and the reduction in tariff tensions between India-US and US-China are likely to diminish gold's 'safe haven' demand. He predicts an additional drop of up to Rs 10,000 in gold prices in the coming days, potentially bringing them down to a range of Rs 1. 10 lakh to Rs 1. 15 lakh per 10 grams.
