Gold and Silver Prices Decline After October Rally; 24K Gold Falls Near Rs 1.2 Lakh

Gold and silver prices are currently experiencing a downturn after a substantial rally throughout October. In India, the price of 24-carat gold is Rs 1.21 lakh per 10 grams, and analysts suggest there is a possibility of prices dropping further, potentially below the Rs 1.2 lakh mark. Internationally, gold is trading below the $4,000 per ounce target, with Bloomberg reporting it at $3,973.15 per ounce in early Asian trading.

The preceding rally in gold prices was propelled by several key factors, including anticipated interest rate cuts by the U.S. Federal Reserve, significant capital inflows into gold-backed exchange-traded funds (ETFs), and consistent purchasing by central banks globally. However, recent economic uncertainties, such as the prolonged U.S. government shutdown delaying crucial economic data, are complicating the assessment of the global economic landscape.

**Impact** This news directly impacts investors holding gold and silver as part of their portfolios, potentially affecting their asset valuation. Fluctuations in gold prices also provide insights into global economic sentiment and inflation expectations, which can indirectly influence broader market sentiment and investor behavior. Commodity traders and central banks closely monitor these movements. The impact rating is 7/10 due to its relevance as a major asset class and indicator.

**Definitions** *Yellow metal*: A common term used to refer to gold. *Bullion*: Gold or silver in its purest form, typically cast into bars or ingots for investment or trade. *Ounce*: A unit of mass commonly used for precious metals, approximately equal to 28.35 grams. *Exchange-Traded Funds (ETFs)*: Investment vehicles traded on stock exchanges that hold assets like gold, tracking its price movements. *U.S. Federal Reserve*: The central banking system of the United States, responsible for monetary policy.