Today, both domestic and international markets witnessed a downturn in the prices of gold and silver. Futures contracts for both metals opened lower on the Multi Commodity Exchange (MCX) and COMEX platforms, with prices continuing to decline during trading.
Weakness in Gold Prices Begins
On the MCX, the August gold futures contract opened at ₹96,485 per 10 grams, approximately ₹505 lower than the previous closing price of ₹96,990. Within the first hour, it fell by ₹585, reaching ₹96,405. During trading, it touched a high of ₹96,486 and a low of ₹96,402.
This year, gold futures have reached a high of ₹1,01,078 per 10 grams. However, it is currently trading significantly below that level. Market analysts attribute this to reduced demand and the strengthening of the dollar.
Silver Also Shows Weakness
The September silver futures contract also started weak. On the MCX, it opened at ₹1,08,124 per kilogram, down ₹305 from the previous session's closing level of ₹1,08,429. At the time of writing, the price was at ₹1,08,180, reflecting a decline of approximately ₹249.
During the day, silver touched a high of ₹1,08,260 and a low of ₹1,08,124. This year, silver futures have surpassed a high of ₹1,09,748 per kilogram.
Gold and Silver also Sluggish on COMEX
Turning to the international market, COMEX also saw a good start for gold and silver, but prices later declined. Gold opened at $3,344.50 per ounce, while the previous closing price was $3,342.90. After some time, it saw a decrease of $21.30, and the price fell to $3,321.60.
Similarly, the silver futures contract started trading at $37.15 per ounce. However, it soon saw a decline of $0.09, and the price fell to $36.99 per ounce. This year, gold on COMEX has seen levels above $3,509.90, and silver above $38 per ounce.
Current Gold and Silver Prices (July 4, as of writing)
MCX (in Rupees)
Gold
- Opening Price: 96,485
- Previous Closing Price: 96,990
- Latest Price (LTP): 96,405
Silver
- Opening Price: 1,08,124
- Previous Closing Price: 1,08,429
- Latest Price (LTP): 1,08,180
COMEX (in Dollars per Ounce)
Gold
- Opening Price: 3,344.50
- Previous Closing Price: 3,342.90
- Latest Price (LTP): 3,321.60
Silver
- Opening Price: 37.15
- Previous Closing Price: 37.08
- Latest Price (LTP): 36.99
Why the Decline?
According to market experts, the recent decline in gold and silver prices is primarily due to the expectation of rising interest rates globally and the strength of the dollar. Uncertainty surrounding the policies of the US Federal Reserve is also affecting precious metals. Additionally, there is a trend of selling by international investors.
In the domestic market, buyers are currently cautious, as prices have recently risen significantly. Investors are now awaiting further signals. Furthermore, the slowdown in demand due to the festive and wedding seasons is also impacting demand.
Need to Monitor Prices
Although there has been a tremendous rise in the prices of gold and silver in the last few months, the current decline has made investors cautious. If there are changes in the global economic situation or indications of interest rate cuts, the prices may experience further fluctuations.
The trend on both MCX and COMEX is currently downward, but market movements can change very quickly. Therefore, traders and investors associated with gold and silver are constantly keeping an eye on the prices.
Highest Levels to Date
- Gold on MCX: ₹1,01,078 per 10 grams
- Silver on MCX: ₹1,09,748 per kilogram
- Gold on COMEX: $3,509.90 per ounce
- Silver on COMEX: Above $38 per ounce
Fluctuations in gold and silver prices are common, but when these fluctuations are of a few hundred rupees or dollars, the interest in the market also increases. In the coming days, based on domestic and international signals, their movement may change again.
