Global Market Slump
On the international stage, both gold and silver experienced considerable falls. At the COMEX, gold saw a 0.48% decrease, settling at $4,691 per ounce.
Silver fared even worse, plummeting by 1.80% and trading at $77 per ounce. These drops in the global market set the stage for the declines observed in the Indian market, highlighting the interconnectedness of international and domestic precious metal prices. The fluctuations can be attributed to various factors including shifts in investor sentiment and economic indicators influencing the demand and supply dynamics.
Indian Market's Reaction
The downturn was keenly felt in India on February 2, 2024, with significant price corrections. In Mumbai, the price of 24K gold reached Rs 1,51,130 per 10 grams, a reflection of the global trend. Silver also took a hit, with prices falling to Rs 3,00,000 per kg, marking a decrease of Rs 50,000. This price movement affected buyers and sellers in the Indian market, particularly those with upcoming weddings or festivals, where gold and silver play a crucial role. This event underscored the vulnerability of the Indian market to international price movements and global economic conditions.
Factors Affecting Prices
Several elements were at play in determining the price changes observed on February 2nd. The international market rates, import duties, and taxes directly affected the final gold prices in India. Additionally, fluctuations in exchange rates also played a crucial role in influencing the daily gold rates across the country. These factors, interacting with each other, create a complex ecosystem where traders and investors constantly monitor the market to stay informed about the latest trends. Understanding these factors provides valuable insight for anyone involved in gold and silver trading.
City-Wise Gold Rates
The price of 24K gold in Mumbai was reported at Rs 1,51,130 per 10 grams. Those looking at 22K gold saw prices at Rs 1,38,900 per 10 grams in the city. These variances demonstrate how gold prices are recorded by purity and the current market's valuation. While these specific figures reflect the market snapshot for February 2nd, the actual prices may vary slightly based on the local market and vendor pricing. Understanding the precise rates is important for consumers, especially during times of celebrations or important events.
MCX Futures Performance
On the Multi-Commodity Exchange (MCX), gold futures for April saw a notable 3.00% decrease, priced at Rs 1,43,321 per 10 grams. Silver futures for March also faced a significant downturn, dropping 6% to Rs 2,49,731 per kg. These drops point to a wider decline in the Indian market, going beyond just the physical commodity trades. The futures market's behavior often reflects investor sentiment and expectation, influencing how the spot markets will eventually perform.
