Gold and Silver Prices Experience Significant Decline
On Tuesday, August 27, 2024, the prices of gold and silver witnessed a substantial drop. As the market opened, both precious metals faced a decline of over 200 rupees. Just a day earlier, gold prices had surged past 72,000 rupees, while silver was trading above 85,000 rupees. Experts suggest that ongoing factors such as the Federal Reserve’s policies and tensions in the Middle East are still impacting market dynamics, indicating that fluctuations may continue in the near future.
Market Overview: Dollar Index and Gold Trends
The U.S. dollar index is currently at a year-low, reflecting an approximate 8% decline over the past two months. Analyzing the data, gold prices have shown a notable increase of around 5% since August 6. Analysts predict that when the Federal Reserve announces an interest rate cut in September, gold prices could rally toward the 75,000 rupee mark. Let’s delve deeper into the current statistics related to gold and silver prices.
Gold Price Decline
According to data from the Multi Commodity Exchange (MCX), gold prices are on a downward trajectory. As of 9:10 AM, gold is priced at 71,797 rupees per 10 grams, reflecting a drop of 242 rupees. It opened at a lower price of 71,898 rupees earlier in the morning, reaching a day-low of 71,770 rupees during the trading session. The previous closing price was 72,039 rupees. Industry experts indicate that an upward trend in gold prices may be observed in the coming days.
Silver Prices also Declining
For the second consecutive day, silver prices have also decreased. At 9:10 AM, silver was trading at 85,411 rupees, down by 257 rupees. It opened the session at 85,350 rupees and closed at 85,668 rupees yesterday. The decline in silver prices is attributed to a sluggish demand in the market. Analysts believe that the continuous sell-off in the precious metal is driven by weak market demand.
Will Gold Exceed 75,000 Rupees?
The crucial question remains: will gold prices surpass 75,000 rupees? Anuj Gupta, Head of Commodity and Currency at HDFC Securities, stated that the upcoming September meeting of the Federal Reserve could potentially result in an interest rate cut between 0.25% and 0.5%. Should the cut exceed 0.25%, we may witness a significant decline in the dollar index, consequently providing support to gold prices. Moreover, the ongoing tensions in the Middle East continue to drive investors towards gold as a safe haven asset, encouraging consistent buying activity.
Current Price Overview
| Metal | Current Price (in Rupees) | Price Change (in Rupees) |
|---|---|---|
| Gold | 71,797 | -242 |
| Silver | 85,411 | -257 |
