Precious metal markets experienced a downturn on August 15, as both gold and silver prices declined on the Multi Commodity Exchange (MCX). This volatility was largely influenced by heightened geopolitical tensions, specifically concerning the ongoing US war against Iran, and warnings of new economic measures from US Treasury Secretary Scott Bessent.
MCX Futures See Significant Drops
On the MCX, gold futures for October delivery registered a notable fall, declining by as much as 0.8%, or ₹1,233, to trade at ₹1,52,233 by 10:22 am. The contract later settled at ₹1,52,415, down ₹1,051 from its previous close. Meanwhile, September silver futures also faced selling pressure, dropping to an intraday low of ₹2,32,454, a decrease of ₹2,993 or 1.27%. Silver was last quoted at ₹2,32,880, down around 1%.
Retail Gold Rates Remain Elevated
Despite the dip in MCX futures, retail gold prices across major Indian cities remained robust. As of August 15, the national rate for 24K gold stood at ₹15,288 per gram, equivalent to ₹1,52,880 per 10 grams. For 22K gold, the rate was ₹14,014 per gram, while 18K gold was priced at ₹11,466 per gram.
Retail prices for these precious metals can vary significantly between cities due to local taxes, demand-supply dynamics, logistical costs, and other market-specific factors.
Silver Retail Price Update
Retail silver prices on August 15 were quoted at ₹254.90 per gram, or ₹2,54,900 per kilogram. Unlike gold, silver's price movements are influenced not only by investment demand but also by its extensive industrial and manufacturing applications.
Factors Influencing Gold and Silver Prices
Several key factors dictate the price trajectory of gold and silver in India. These include international bullion prices, fluctuations in the US dollar exchange rate, domestic demand, and seasonal purchasing patterns, particularly during festivals and wedding seasons. Global geopolitical developments, as seen recently, can also trigger sharp movements in both international and domestic precious metal markets.
Investors and consumers are advised to monitor international prices, currency movements, local premiums, and MCX rates closely before making any purchasing decisions.