Gold and Silver Prices Drop Ahead of Diwali, Offering Relief to Buyers
Gold and silver prices fall ahead of Diwali, providing a boost for festive shoppers as market pressures continue.
New Delhi, October 27 (Daily Kiran) : As Diwali approaches, buyers in New Delhi are greeted with favorable news regarding gold and silver prices. On October 27, the domestic and international markets continued to show pressure on precious metals, leading to a decline in prices. Gold on the Multi Commodity Exchange (MCX) dropped by 0.43%, settling around ₹1.42 lakh per 10 grams. Silver also saw a significant decrease, falling 2.1% to approximately ₹1.91 lakh per kilogram.
The decline in prices has brought relief to consumers planning their festive purchases. Market experts attribute this trend to fears of high global interest rates, weakened investment demand, and ongoing sell-offs in international markets, all of which are impacting domestic prices.
In the international market, gold traded at about $4,016.60 per ounce, down 0.54%, while silver fell 2.73% to $52.855 per ounce. The global market has faced consistent pressure, with gold hovering around the psychologically significant $4,000 per ounce mark. Investors are closely monitoring the upcoming U.S. Federal Reserve meeting and its implications for interest rate policy.
The weakness in global markets is reflected in Indian trading as well. On the MCX, gold for December delivery showed a decrease of ₹656, or 0.46%, trading at ₹1,42,417 per 10 grams. Meanwhile, silver experienced an even larger drop, declining by ₹3,808, or 1.94%, to trade at ₹1,91,985 per kilogram.
During the day’s trading, gold reached a low of ₹1,42,216 per 10 grams, while silver hit an intra-day low of ₹1,91,516 per kilogram. Earlier this year, on January 29, gold peaked at nearly ₹1,93,000 per 10 grams, and silver soared to a historic high of ₹4,20,048 per kilogram. Currently, gold is approximately ₹50,784 lower than its peak, and silver has dropped around ₹2,28,532 from its highest level.
Experts suggest that demand during the wedding and festive season may provide some support for prices. However, uncertainty surrounding global economic indicators and interest rates continues to dominate the market. Analysts indicate that the ₹1,43,000 to ₹1,43,700 range on the MCX is a crucial resistance level for gold. If prices stabilize above this threshold, there may be a return to stability. Conversely, the ₹1,40,000 to ₹1,41,000 range is seen as a significant support zone.
For silver, the resistance remains between ₹2 lakh and ₹2.02 lakh per kilogram, while the ₹1.92 lakh to ₹1.94 lakh range is viewed as strong support. Despite these levels, technical indicators suggest that selling pressure has not fully dissipated, and caution remains in the market.
