Tremendous turmoil is being witnessed in the bullion market today. On Thursday, as soon as the futures market (MCX) opened, a heavy decline was recorded in the prices of precious metals. The latest market situation is as follows:
A mixed trend is being seen in gold prices in the metropolitan cities of the Indian bullion market today. According to the latest data from ‘goodreturns’, 24-carat gold remains at ₹15,457 per gram in the national capital Delhi, while the rate is ₹14,170 for 22-carat and ₹11,597 per gram for 18-carat. Prices are at similar levels in the financial capital Mumbai as well as Kolkata and Bengaluru; here 24-carat gold is selling at the rate of ₹15,442, 22-carat at ₹14,155, and 18-carat at ₹11,582 per gram. On the other hand, rates are slightly higher in Chennai compared to other metros, where the price of 24-carat gold has been recorded at ₹15,622, 22-carat at ₹14,320, and 18-carat gold at ₹12,250 per gram.
Historic Decline in Silver
A major ‘crash’ has been seen in the silver market today. By 10:27 AM, March delivery silver broke up to 9.03% compared to the previous session. A heavy reduction of about ₹36,000 was seen in prices, after which silver slipped to the level of ₹2,44,562 per kilogram.
Gold Also Became Cheaper
Along with silver, a softening trend remains in gold prices as well. A decline of 1.27% was recorded in the price of April delivery gold. After this decline, gold is trading at the level of ₹1,51,106 per 10 grams.
Heavy pressure is also being seen on gold prices in the international market. On Thursday, a decline of more than 1% was recorded in global gold prices, and it tumbled to the level of approximately $4,880 per ounce. This decline has largely reduced the gains made from the recovery over the last two days.
The stance of the Federal Reserve (Fed) and US political appointments are considered the main reasons behind this reduction in prices:
Caution on Interest Rates: Fed Governor Lisa Cook has indicated not supporting additional rate cuts. She described rising inflation as a bigger challenge compared to the weakening labor market, creating a selling atmosphere in the market.
Impact of Hawkish Stance: Concerns have increased among investors due to President Trump nominating Kevin Warsh as the next Fed Chairman. Warsh is considered more ‘hawkish’ (strict stance) compared to other candidates, leading to estimates that the pace of interest rate cuts will remain slow in the future.
Market Volatility: It is noteworthy that a record rise of more than 6% was seen in gold earlier this week, which was the biggest single-day gain since 2008. However, the Fed’s stance and the strength of the dollar have put a brake on that rally.
