Gold Rates Dropped: Yellow metal falls by Rs 9000, silver by Rs 23000 – what’s the reason behind the fall?

Gold fell by over Rs 9,000; silver dropped Rs 23,000 from record highs. Current gold rate: Rs 1,23,255 (10g); silver: Rs 1,47,150 (1kg).

Gold Rates Dropped: After the historic surge streak, precious metals gold and silver have witnessed a significant decline in recent days, especially post-Diwali. The prices of both the precious metals are falling daily. On Friday, the price of 24-carat gold fell by nearly Rs 2,000 to Rs 1,21,518 per 10 grams. Silver prices also fell by more than Rs 4,000 to Rs 1.47 lakh per kg.

How Much Gold And Siler Prices Fell In Recent Days?

In recent days the yellow metal has fallen more than Rs 9,000 from its record high, silver prices have fallen by Rs 23,000. As per MCX, the rates of both the precious metals for December futures were trading at record highs on October 17. For 10 grams of gold people had to pay Rs 1.32 lakh, while for 1 kg silver, they had been charged 1.70 lakh per kg.

However, the prices of these metals have since plummeted to record lows. On MCX, 10 grams of the yellow metal traded at Rs 1,23,255, while 1 kg of silver was priced Rs 1,47,150. Witnessing the significant decline, people are wondering whether gold and silver prices will continue to fall further.

Why Is The Price Of Gold Falling?

As per a report by news agency Reuters, citing experts, after both metals reached record highs, investors started massive profit-booking.

Apart from profit booking, the ongoing tensions due to the US-China trade war have eased. Additionally, global geopolitical tensions are also easing.

Another factor affecting the gold and silver prices is the decline in demand in India after the major Dhanteras and Diwali buying.

Will Gold And Silver Continue To Fall?

It is not a secret that both gold and silver have long been considered safe investments, notjust for investors even for countries which is why the central banks were aggressively buying the yellow metal. In India, gold is more than a jewellery as people buy it for their future or for emergencies. Experts believe that gold and silver offer long-term safety.

Both metals have currently fallen due to profit-booking. Experts also suggest investors to wait few weeks before investing.

Some experts suggested that if you are a retail investor and are buying gold for the long term, then you can invest money in gold by buying a small quantity, which in the longer run sees the effect of averaging.