Gold price drops to Rs 78,325; silver declines to Rs 94,160 amid market sluggishness

The recent surge in gold and silver prices appears to be losing momentum, as significant declines were observed in the domestic bullion market on November 5, 2024. Gold futures traded at Rs 78,325 per 10 grams, down by Rs 97 from the previous day’s closing of Rs 78,422 on the MCX. Meanwhile, silver futures fell by Rs 124 to Rs 94,160 per kg, compared to Rs 94,284 on Monday.

In the international market, gold was trading flat at around $2,750, contributing to the lacklustre performance in domestic futures. Silver prices have been on a downward trend for the past six days, with a notable drop of Rs 1,200 recorded in the last session.

In Delhi’s bullion market, gold prices slipped from their record high, with prices falling by Rs 1,300 to Rs 81,100 per 10 grams. The All India Bullion Association reported that gold of 99.9 per cent purity remained stable at Rs 82,400 per 10 grams, while 99.5 per cent purity gold dropped to Rs 80,700 per 10 grams from Rs 82,000 in the previous session. Silver also experienced selling pressure, plummeting by Rs 4,600 to Rs 94,900 per kg, down from Rs 99,500 previously.

Reasons for the decline

The decline in gold and silver prices can be attributed to fresh selling by stockists and retailers following the Diwali festivities. Traders noted a slowdown in demand from jewellers and retailers in local markets. Additionally, uncertainty surrounding the upcoming U.S. presidential elections and the Federal Reserve's impending decision on interest rates is causing investors to be cautious, avoiding large positions in precious metals. This combination of factors has led to the recent downturn in both gold and silver prices.