Gold prices in India experienced a sharp decline on Monday, November 25, as a result of ongoing geopolitical concerns, the ongoing Adani crisis, and instability in global commodity markets. The downturn in prices also reflects traders’ cautious stance as they await further economic indicators, particularly concerning the Federal Reserve’s interest rate policies. Expectations of potential rate cuts from the Federal Reserve added to the volatility in the market. This week, gold prices are expected to remain in a range of fluctuations, influenced by a weakening U.S. dollar index and positive yields on 10-year Treasury bonds, as investors await critical economic data such as the minutes from the Fed’s November meeting, GDP figures, and the core Personal Consumption Expenditures (PCE) index.
Gold Prices in India
On Monday, gold prices in India dropped significantly. The cost of 22-carat gold fell to Rs 7,200 per gram, while 24-carat gold was priced at Rs 7,855 per gram. The 100-gram price of 22-carat gold experienced a Rs 10,000 decrease, from Rs 7,30,000 to Rs 7,20,000, while 10 grams of 22-carat gold dropped by Rs 1,000, from Rs 73,000 to Rs 72,000.
The price of 24-carat gold also saw substantial declines. For 10 grams, the price decreased by Rs 1,090, from Rs 79,640 to Rs 78,550, while 100 grams of 24-carat gold fell by Rs 10,900, from Rs 7,96,400 to Rs 7,85,500. Prices for 18-carat gold followed suit, with 100 grams decreasing by Rs 8,200, from Rs 5,97,300 to Rs 5,89,100, and 10 grams falling by Rs 820, from Rs 59,730 to Rs 58,910.
Global Gold Market Trends
Globally, gold prices also experienced a downturn. U.S. gold futures dropped by 0.5%, reaching $2,697.90 per ounce, while spot gold declined by 0.6%, settling at $2,695.79 per ounce. This drop in price eased gold off a three-week high. Other precious metals also saw declines, with palladium falling 0.6% to $1,003.21 per ounce, platinum decreasing by 0.3% to $960.85, and spot silver dropping by 1% to $30.99 per ounce.
Silver Prices in India
Silver prices in India mirrored the trends seen in gold. On November 25, silver was priced at Rs 91.50 per gram, or Rs 91,500 per kilogram. The price for 10 grams of silver fell from Rs 920 to Rs 915, while the price for 100 grams decreased from Rs 9,200 to Rs 9,150. The cost of 1 kilogram of silver also dropped by Rs 500, from Rs 92,000 to Rs 91,500.
MCX Gold Outlook
Gold prices on the Multi Commodity Exchange (MCX) also saw a slight dip, falling below $2,700 per ounce on Monday. This decline followed a 6% surge last week, driven by safe-haven demand amidst the escalating Russia-Ukraine conflict. The domestic MCX Gold (December 2024 contract) closed firm near its daily highs, indicating a strong bullish signal. The market is currently approaching key resistance levels around Rs 77,900–78,000. On the downside, support levels for MCX Gold are seen at Rs 75,800–76,000, with a potential break below Rs 75,800 pushing prices towards Rs 73,500–74,000.
Gold and Silver Market Outlook
Today, both gold and silver are trading lower in the international market. However, market analysts predict that the prices of both metals may trade within a range or potentially rise, as gold stabilizes following last week’s significant 20-month high increase. The continued escalation of tensions in the Russia-Ukraine conflict is expected to sustain demand for gold as a safe-haven asset, which could influence prices throughout the week.
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