Sharp fall in gold and silver prices: 24 carat gold fell by ₹ 3440 in a week, silver fell by ₹ 5000.

The sentiment of precious metals, which were trading at record highs for some time on the Indian bullion market and Multi Commodity Exchange (MCX), has suddenly softened. Just before the upcoming festive and wedding season, a sharp decline in the prices of gold and silver has been seen. Within the last one trading week, a huge reduction of ₹ 3,440 per 10 grams has been recorded in the price of 24 carat pure gold, while 22 carat gold, which is most used in jewelery making, has also become cheaper by about ₹ 3,150 per 10 grams. Along with the yellow metal, there has been strong selling pressure in silver too and due to slow industrial demand and profit-booking by speculators, silver has slipped below ₹ 5,000 per kg. This sudden decline in the retail markets across the country has brought shine to the faces of common consumers, investors and jewelers. For those buyers who were postponing purchases for a long time due to skyrocketing prices, this decline has emerged as a big opportunity.

According to commodity market analysts, many global and domestic factors are responsible for this sharp fall in the prices of gold and silver. Due to the strengthening of the US Dollar Index in the international market and US treasury bond yields remaining at high levels, the attractiveness of gold as a safe investment has weakened slightly. Large institutional funds and hedge funds have booked huge profits at upper levels on the international COMEX exchange following mixed signals regarding interest rate cuts by the US Federal Reserve. Additionally, investor sentiment has returned to the stock market and other risk assets amid reports of diplomatic talks on the global geopolitical front to some extent. At the domestic level too, the rupee has remained stable against the dollar, due to which domestic consumers are directly benefiting from the reduction in import costs. When international spot gold slipped below its high level of $ 4,500 an ounce, its direct impact was seen on the Indian markets.

After this decline in the price of gold, which was at its historical peak till last week, now the new prices of gold of different purities have been recorded as follows:

• 24 Karat Pure Gold (99.9% Purity): The price of 24 carat gold, used for investment, has decreased by ₹3,440 per 10 grams. After this decline, its average price at the national level has fallen to the range of around ₹ 1,54,800 to ₹ 1,55,500 per 10 grams, which had earlier crossed ₹ 1,59,000.

• 22 Karat Jewelery Gold (91.6% Purity): The prices of 22 carat gold, best suited for making jewellery, have softened by around ₹3,150 per 10 grams. With this cut, the retail price of 22 carat gold has now reached around ₹ 1,41,800 to ₹ 1,42,500 per 10 grams.

• 18 Karat Gold (75% Purity): 18 carat gold, popular for lightweight and affordable jewellery, also fell by ₹2,500 to ₹2,600 per 10 grams to trade around ₹1,16,000.

• Silver Rates: The sharpest decline has been seen in silver. With a sharp fall of ₹ 5,000 per kg, the retail price of silver has now come down to the level of ₹ 2,35,000 to ₹ 2,37,000 per kg, which was trading above ₹ 2,42,000 last week.

Due to local taxes, octroi and transportation costs, there is a slight difference in the prices of gold and silver in different cities of the country.

• Delhi Bullion Market: In the national capital New Delhi, the price of 24 carat gold has been recorded at approximately ₹ 1,56,810 per 10 grams and the price of 22 carat gold has been recorded at ₹ 1,43,750 per 10 grams.

• Mumbai: In the country’s financial capital Mumbai, 24 carat gold is stable at ₹ 1,56,660 per 10 grams and 22 carat gold at ₹ 1,43,600 per 10 grams.

• Uttar Pradesh (Lucknow and Kanpur): In the markets of Lucknow and Kanpur, the capital of Uttar Pradesh, the retail price of 24 carat gold has reached ₹ 1,56,810 per 10 grams and the price of 22 carat jewelery gold has reached ₹ 1,43,750 per 10 grams.

• Bihar (Patna): In Patna, the rate of 24 carat gold remains at ₹1,56,710 per 10 grams and the rate of 22 carat gold remains at ₹1,43,650 per 10 grams.

• Rajasthan (Jaipur): In the pink city of Jaipur, the price of 24 carat gold was recorded at ₹1,56,810 and the price of 22 carat gold was recorded at ₹1,43,750 per 10 grams.

• South India (Chennai and Bengaluru): 24 carat gold is trading at ₹1,56,810 per 10 grams in Chennai and ₹1,56,710 per 10 grams in Bengaluru.

In the coming days, big Hindu festivals like Navratri, Dussehra, Karva Chauth, Dhanteras and Diwali are coming, soon after which the heavy wedding season will start. At such a time, the fall in gold prices by more than ₹ 3,400 per 10 grams and silver by ₹ 5,000 per kg is no less than a boon for common middle class families. Jewelery sellers say that as soon as the prices fall, there is a 25 to 30 percent increase in inquiries and advance bookings at the shops.

Market experts believe that this fall in gold is a temporary correction. Due to long-term global economic uncertainties, continuous reserve purchases of gold by central banks and protection from inflation, the long-term trend of gold is still pointing towards bullishness. In such a situation, for those who want to buy gold or silver for personal use or investment purposes, buying in installments (SIP or on dips) this fall can prove to be a wise financial move.

It is important for the customers going to buy in the bullion market that they should not only pay attention to the fall in prices, but also be completely alert about the purity and standards. According to the rules of the Ministry of Consumer Affairs, Government of India, the sale of jewelery with 6 digit alphanumeric ‘HUID’ (Hallmark Unique Identification) code is mandatory and legal across the country.

Be sure to check for these four key signs when buying gold jewellery:

1. BIS Logo: The jewelery should bear the triangular official logo of the Bureau of Indian Standards (BIS).

2. Purity Grade: The number should be 999 for 24 carat, 916 for 22 carat, 750 for 18 carat and 585 for 14 carat.

3. 6 digit HUID code: Each jewelery must have a unique 6 digit laser engraved code, which can be entered on the ‘BIS Care App’ to instantly verify the purity of the jewellery, complete details of the manufacturer and the hallmarking centre.

4. Take a confirmed bill: After purchase, always get a confirmed GST bill from the jeweler, which clearly mentions the weight of the gold, carat purity, making charges and the applicable gold price of that day.