Amidst Festive Season, Gold Falls By Rs 1,719, While Silver Goes Down By Rs 3,000

New Delhi, 15th October 2022: Due to the rising dollar index and speculations of a US Fed rate hike in the upcoming FOMC meeting, gold prices remained under pressure throughout the week. On Friday, the gold rates on the Multi Commodity Exchange (MCX) closed at ₹ 50,280 per 10 grams. Yesterday in the intraday trade, the price of gold had broken around ₹ 600 per 10 grams. Whereas on a weekly basis, MCX gold recorded a loss of ₹ 1,719 per 10 grams or Rs 3.30. In the spot market, gold prices on Friday declined by 1.33 percent to end at $1,643 an ounce.

According to IBJA, gold fell from Rs 51,120 to Rs 50,438 in the last one week in the market. That is, the price of gold has fallen by Rs 682 in five days.
At the same time, the price of one kg of silver (silver price today) has broken by about Rs 3,000 in a week. During this, silver fell from Rs 58,949 to Rs 56,042 per kg. That is, silver has become cheaper by Rs 2,907 this week.

According to commodity market experts, the major reason for the fall in gold prices this week is the rise in the dollar index. Experts say that due to the feeling of panic in relation to the US dollar, people are swapping gold for dollars. They further said taht gold prices are expected to remain down on the back of a stronger US dollar and may trade in the range of $1,640 to $1,700 an ounce.

Till Diwali, the price of gold is expected to remain in the range of Rs 50,200 to Rs 51,500

Talking about the prices of gold till Diwali, experts said that the price of gold metal is expected to remain low.
On breaking the 50,200 level on MCX, gold can go up to Rs 49,300, while in the spot market, the next support below $ 1640 is placed at $1,600.

Amit Sajeja of Motilal Oswal said, “Gold price is expected to remain range bound till Diwali 2022 and high risk traders can buy gold at around $1,640 level in spot market. Gold price on MCX is ₹51,300 to ₹51,300 till Diwali. 51,500 per 10 grams.”