On Monday, August 31, the first trading day of the week, gold and silver prices declined in both international and Indian commodity markets. The two precious metals had witnessed continued volatility during the previous week.
Gold and silver prices declined in the international market on Monday. According to available data from the COMEX market, gold fell by around 1.15% during trading and was seen trading at approximately $4,477.80 per ounce. Silver also remained under pressure, with its COMEX price declining by around 1.71% to approximately $65.850 per ounce.
The decline in international prices is relevant for investors and jewellery buyers in India. However, domestic prices are also influenced by the rupee exchange rate, import costs and local demand, along with international prices.
Gold prices also declined on the Multi Commodity Exchange (MCX) on Monday. During trading, gold fell by around ₹1,887 to approximately ₹1,54,394 per 10 grams.
Silver also recorded a decline. Around 9 am, silver on MCX had fallen by approximately ₹3,394 and was seen trading at around ₹2,39,050 per kilogram.
Gold prices in the domestic market vary according to purity. According to available trading data, 24-carat gold was around ₹1,54,394 per 10 grams on Monday, while 22-carat gold was reported at approximately ₹1,41,836 per 10 grams. 22-carat gold is generally used more commonly in jewellery because other metals are added to increase its strength.
18-carat gold was also seen trading at around ₹1,16,048 per 10 grams. The base gold rate does not constitute the final price of jewellery.
Gold prices are not exactly the same across all cities in India. In addition to international prices and MCX rates, differences in local taxes, transportation costs, demand, jewellers' margins and other charges can affect retail prices.
For jewellery purchases, making charges, GST and other applicable charges are also included in the final bill. The final price and all applicable charges can therefore be confirmed with the local jeweller before purchasing jewellery.
Silver prices also remained lower on Monday, with the domestic price seen trading at around ₹2,39,050 per kilogram. Silver is used extensively in addition to jewellery in the industrial sector. Its use in solar panels, electronics and other industrial products means that global economic activity also affects silver prices.
