New Delhi, October 24 (IANS). Due to global uncertainties, gold and silver remained under heavy pressure this week and both the precious metals registered a sharp decline. Gold prices fell by about 3.5 percent this week, which is considered to be its worst weekly performance since June. At the same time, silver also remained under continuous selling pressure and its prices fell by 7.8 percent this week, reaching the lowest level since November 2025.
According to experts, rising tensions in West Asia, high crude oil prices and fears that the US Federal Reserve will keep interest rates high for a long time have affected the demand for gold and silver. Since gold does not pay interest, its attractiveness reduces in an environment of high interest rates.
The impact of international weakness was clearly visible in the domestic market also. The December futures price of gold on Multi Commodity Exchange (MCX) fell to around Rs 1,42,150 per 10 grams. During trading, gold slipped to Rs 1,42,079 per 10 grams, showing a decline of about Rs 1,230, or 0.86 percent, compared to the previous session.
A bigger fall was seen in silver. December futures silver price reached around Rs 1,95,408 per kg, registering a decline of Rs 4,191 or 2.1 percent. Due to continuous selling, the price of silver now remains below the important level of Rs 2 lakh per kg.
Talking about the international market, Comex gold fell 1.24 percent to around $ 4,010 an ounce on Saturday morning, while during trading it slipped to $ 3,989.10 an ounce, which is the lowest level since July 20. Whereas on Comex, silver fell by about 1.9 percent to $ 53.96 an ounce.
Market analysts say that the biggest reason behind this decline is the rise in crude oil prices. Brent crude has reached close to $ 116.7 per barrel due to Houthi attacks and increasing tension in West Asia. Higher oil prices could increase inflation, causing central banks to keep interest rates higher for longer periods of time.
According to experts, the chances of an interest rate hike at the Federal Reserve meeting to be held at the end of October are limited, but the probability of raising rates in December still remains more than 80 percent. This is the reason why investors are avoiding making new purchases in gold and silver.
Apart from this, a strong dollar and high US bond yields have also weakened the demand for gold. Experts say that at present, concerns related to inflation and interest rates are creating a negative environment for the bullion market.
In the coming days, the market will keep an eye on the US Personal Consumption Expenditure (PCE) inflation data, which the Federal Reserve considers a key indicator of inflation. Apart from this, the European Central Bank meeting, China's economic data and developments related to the global energy market will also decide the direction of gold and silver.
Experts believe that if inflation remains high and central banks continue to maintain a tight stance, precious metals may remain under pressure. However, in case of any major geopolitical risk or economic uncertainty, gold can again find support as a safe investment.
–IANS
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