Gold and silver prices declined sharply in the Indian bullion market and on the Multi Commodity Exchange (MCX) on Thursday, falling below their recent record levels amid heavy selling pressure.
Amid changing global economic conditions and shifting investment trends in international markets, both precious metals registered a notable decline during Thursday's trading session. The drop in prices has reduced the cost of purchasing gold and silver for consumers planning to buy jewellery or acquire the metals for investment purposes.
According to experts, easing global tensions, a ber US dollar, and rising expectations regarding interest rates have put pressure on gold and silver prices. As a result, both metals are trading below their recent highs.
Prices of 24-carat, 22-carat, and 18-carat gold declined in the Indian market. While rates may vary slightly across cities and local markets, gold prices were lower compared with the previous trading session. Analysts said gold prices had reached elevated levels in recent weeks due to global geopolitical tensions and demand for safe-haven assets. With investors showing a greater willingness to take on risk, profit-booking has emerged in the gold market.
Traders associated with the jewellery industry said the recent decline in prices could support demand ahead of the upcoming wedding and festive season.
Silver prices also moved lower alongside gold. The metal, which is used in both industrial applications and investment, has experienced significant price fluctuations in recent weeks. Market experts attributed the decline in silver prices to weakness in international commodity markets and investor profit-booking.
However, from a long-term perspective, several analysts continue to view silver as an attractive investment option, particularly in light of increasing demand from the green energy and electronics industries.
