Gold & Silver Prices SHOCKING Drop! 🚨 Why India's Precious Metals Just Plummeted Amid Fed Rate Cut Fears

Author

Abhay Singh | Whalesbook News Team

Detailed Coverage:

Gold and silver prices experienced a sharp decline in Indian markets on Friday. Gold prices fell by Rs 1,500 per 10 grams to settle at Rs 1,29,400 for 99.9% purity, and Rs 1,28,800 for 99.5% purity. Silver prices also saw a steep decline, tumbling Rs 4,200 per kg to Rs 1,64,800. The downturn is primarily driven by weak global cues, stemming from remarks by US Federal Reserve officials. They suggested that the absence of new economic data could lead to delays in further interest rate cuts, increasing investor caution towards precious metals. A stronger US dollar index also added to the pressure. Saumil Gandhi, Senior Analyst – Commodities at HDFC Securities, noted that this uncertainty surrounding the Federal Reserve's next move pushed gold prices down. Jateen Trivedi, VP Research Analyst – Commodity and Currency at LKP, concurred, stating that comments about delayed rate cuts and a stronger dollar negatively impacted sentiment.

Impact This sharp fall in gold and silver prices can affect investors holding these precious metals, potentially leading to short-term losses. It also impacts jewellery retailers and manufacturers who depend on stable commodity prices. However, for consumers, it might present a buying opportunity if they anticipate a price recovery. Rating: 7/10

Difficult Terms: Global cues: Indicators or trends from international markets that influence domestic market sentiment and trading decisions. US Federal Reserve: The central banking system of the United States, responsible for monetary policy, including setting interest rates. Interest rate cuts: A reduction in the central bank's benchmark interest rate, typically aimed at stimulating economic growth by making borrowing cheaper. Dollar index: A measure of the value of the US dollar relative to a basket of foreign currencies. A stronger dollar index generally makes dollar-denominated assets more expensive for holders of other currencies. Spot gold/silver: The price for immediate delivery of the precious metal, as opposed to futures contracts.