Gold Plummets to 3-Week Low as Prices Tumble Rs 800 While Silver Sinks Rs 2,000
Gold prices resumed a sharp downward trajectory on Friday, hitting a three-week low in the national capital. The yellow metal saw a significant depreciation of Rs 800 per 10 grams to reach Rs 1.45 lakh, driven largely by sluggish local demand.The price of 99.9 per cent purity gold fell to Rs 1,45,500 per 10 grams including all taxes. This marks a notable decline from Thursday's closing level of Rs 1,46,300 per 10 grams, according to data from the All India Sarafa Association.
Significant Price Retracement in Precious Metals
The silver market mirrored this bearish sentiment as prices dropped by Rs 2,000. Silver traded at Rs 2,22,500 per kilogram including all taxes, down from the preceding session's close of Rs 2,24,500 per kg.Traders observed that gold prices resumed their decline following a two-session pause in activity. While the yellow metal hit its lowest point in three weeks, silver continued to experience a period of sustained liquidation.
Historical Context and Market Positioning
The current price levels sit near the figures recorded on June 25, when gold was quoted at Rs 1,45,300 per 10 grams. The recent slide highlights a tightening market as domestic demand remains muted despite earlier fluctuations.Market participants noted that while local prices are under pressure, the international landscape shows a divergent split between gold and silver performance. This discrepancy is creating a complex environment for domestic buyers and investors.
Global Market Divergence Against Domestic Trends
In international markets, spot gold actually gained $15.42 or 0.39 per cent to reach $3,992 per ounce. Conversely, silver edged lower in the global arena to $55.37 per ounce.This contrast between local price depreciation and certain global gains underscores the impact of domestic demand dynamics on current pricing trends. The market remains sensitive to these fluctuations as traders monitor the ongoing liquidation in the white metal segment.
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