On the morning of August 1st, gold and silver prices witnessed a decline in both domestic and international markets. This softening in the prices of these precious metals comes even before the start of the festive season. In particular, this drop ahead of traditional occasions like Raksha Bandhan is good news for customers.
Gold Weakens on MCX, Trades Lower
On the Multi Commodity Exchange (MCX), the October gold futures contract opened this morning at ₹98,702, reflecting a decrease of ₹67. Its previous closing price was ₹98,769.
At the time of writing, this contract was trading at ₹98,619, having fallen by a total of ₹150. During this period, gold touched a high of ₹98,704 and a low of ₹98,572.
Notably, gold has already touched a high of ₹1,01,078 per 10 grams this year, which is its highest level to date.
Silver's Shine Dims, Weakness in Early Trading
Silver prices also showed a softening trend today. The September delivery silver futures contract opened on the MCX at ₹1,09,854, down by ₹118. The previous closing price was ₹1,09,973.
At this time, the price of silver was trading at ₹1,09,868, a decrease of ₹104. The day's high was ₹1,10,107 and the low was ₹1,09,842.
This year, silver has also touched a high of ₹1,16,641 per kg.
Subdued Sentiment in International Markets as Well
The impact of this decline in gold and silver is not limited to India. These metals have also seen weakness at the international level.
On Comex, gold opened today at $3,342.70 per ounce, which is below the previous closing price of $3,348.60. As of writing, gold was trading at $3,343.50 per ounce, a decrease of $5.10.
Gold has so far reached $3,509.90 per ounce on Comex this year, which is its highest level.
Silver Shows Slight Fluctuation on Comex
Silver prices also saw a slight decline in the international market today. Silver futures on Comex opened today at $36.78 per ounce, while the previous closing price was $36.71.
However, as of writing, it was trading at $36.70 per ounce, a slight decrease of $0.01.
Silver on Comex has touched its highest level of around $38 this year.
Why are Gold and Silver Prices Falling?
There could be several reasons behind this decline in prices. Recent signals from the US economy, the movement of the dollar, changes in bond yields, and economic news related to China and Europe all affect the movement of these metals.
In addition, the strengthening of the rupee against the dollar in India and a slight slowdown in domestic demand could also be potential reasons for this decline.
However, it is also true that the market is expected to regain its vibrancy as the festive season begins, which may affect prices.
Today's Prices at a Glance
MCX (India):
Gold (₹/10 grams)
- Opening Price: ₹98,702
- Previous Closing Price: ₹98,769
- Latest Price (LTP): ₹98,619
Silver (₹/kg)
- Opening Price: ₹1,09,854
- Previous Closing Price: ₹1,09,973
- Latest Price (LTP): ₹1,09,868
COMEX (International Market):
Gold ($/ounce)
- Opening Price: $3,342.70
- Previous Closing Price: $3,348.60
- Latest Price (LTP): $3,343.50
Silver ($/ounce)
- Opening Price: $36.78
- Previous Closing Price: $36.71
- Latest Price (LTP): $36.70
(Note: Gold prices on MCX are in Rupees per 10 grams and silver in Rupees per kg, while on COMEX both are in dollars per ounce. All prices are as of the time of writing.)
