Gold and silver prices continued their downward trend on Friday, offering relief to buyers ahead of the festive and wedding season. Despite ongoing geopolitical tensions between the United States and Iran, prices of both precious metals declined sharply on the Multi Commodity Exchange (MCX), with analysts attributing the fall largely to the latest policy signals from the U.S. Federal Reserve.
Gold has now fallen around ₹50,000 per 10 grams from its all-time high, while silver has declined by nearly ₹1.98 lakh per kilogram from its record peak.
Gold and Silver Prices on MCX
On Friday, August 5 gold futures on the MCX dropped by ₹800, trading at ₹1,44,511 per 10 grams.
Meanwhile, September 4 silver futures declined by ₹3,577, settling at ₹2,22,800 per kilogram.
Although prices witnessed only a modest decline during early trade, selling pressure intensified around 11 a.m., leading to a sharper fall in both metals.
Global Precious Metal Prices Also Decline
The weakness was also reflected in international markets.
- Gold fell 0.50% to US$4,122 per ounce.
- Silver also slipped 0.50% to US$60.445 per ounce.
Market experts believe that expectations surrounding future U.S. Federal Reserve policy and global economic developments continue to influence investor sentiment in the precious metals market.
Prices Significantly Lower Than Record Highs
According to MCX data, gold and silver had touched record highs in January, raising concerns among consumers, particularly as demand for precious metals remains strong during festivals and weddings in India.
At its peak, gold had surged to nearly ₹1.93 lakh per 10 grams, but has now declined by approximately ₹50,000.
Similarly, silver had reached ₹4.20 lakh per kilogram, but has now fallen to ₹2.22 lakh per kilogram, marking a decline of nearly ₹1.98 lakh from its all-time high.
The correction in prices has come as a relief for consumers planning to purchase jewellery and precious metals in the coming months.
Gold Rates Across Major Cities
Retail gold prices vary across cities due to local taxes, making charges and transportation costs. Buyers are advised to check the latest rates in their respective cities before making any purchase, as prices are updated daily based on market movements.