Summary of this article
Gold Price Today: The prices of physical gold and silver continued to fall on October 22. The decline in prices followed global selloffs which led to a correction in prices.
Gold and Silver Price Today: The prices of physical gold and silver continued to fall on October 22. The declines followed a global selloff on October 21, along with a slowdown in festive buying post Diwali and Dhanteras. Gold futures extended losses on the NYMEX as Gold Futures with December 25 expiry fell over 2 per cent to an intraday low of $4,021.91.
Silver Futures fell nearly 2 per cent to $46.82 per troy ounce. However, at the time of writing, Gold and Silver futures recovered slightly to trade at $4,102.46 and $47.83 levels, respectively. The price of spot gold also slipped to $4,098.70 per troy ounce by $44.30 or 1.07 per cent.
The price of spot silver declined to $48.66 per troy ounce, falling by $0.31 or 0.63 per cent. Notably, the full impact of the declines will be seen on October 23 as the market resumes for trading and gold and silver are traded on the Multi Commodity Exchange (MCX).
Physical Gold And Silver Prices Decline
On October 22, the price of one gram of 24 karat physical gold fell by Rs 338 to Rs 12,720. The price of 22 karat gold also declined significantly, falling by Rs 310 to Rs 11,660, and the price of 18 karat gold fell by Rs 254 to Rs 9540. On the other hand, the price of physical silver also declined by Rs 2000 per kilogram to Rs 1,62,000.
The decline follows a rally in gold and silver prices, which pushed the price of the precious metals to record high levels. On October 17, the prices of 24 karat gold and 22 karat gold hit their record high levels as they traded at Rs 13,277 per gram and Rs 12,170 per gram, respectively. On the other hand, the silver price surged to a record high of Rs 1,90,000 per kilogram on October 15. Following the record highs, the prices of the precious metals have been on a declining spree. Currently, the prices of 24 karat gold and 22 karat gold are trading 5.18 per cent and 5.17 per cent lower than their all-time highs. The price of silver also trades 14.73 per cent below its all-time high levels.
Why Are Gold And Silver Prices Falling
Several factors have led to the decline seen in the prices of physical gold and silver. The factors include a moderation in festive buying, likely profit booking a strengthening dollar and trends in global commodity trade.
Moderation In Festive Buying
The demand for precious metals tends to surge during the festive period, especially Diwali and Dhanteras, as purchasing gold and silver during these periods is considered auspicious. As the festive period nears its close, the demand for precious metals has moderated, and buying activity has reduced. This, in turn, leads to a decrease in demand and a drop in prices.
Profit-Booking
Likely profit-booking is expected to have occurred after gold and silver prices hit their respective all-time highs. Following the substantial rally, investors are likely to have sold gold and silver to book profits and realise their gains. The selloffs led to a sharp correction in gold and silver prices globally.
Global Market Crash
The global precious metals market saw a significant single-day slump, with spot gold falling over 6 per cent and silver dropping over 7 per cent on October 21. India's domestic prices are now catching up to the global trend.
Despite the sell-offs, gold remains one of the year's outstanding assets, giving returns of nearly 56 per cent year-to-date. Investors are awaiting the resumption of trading activity on October 22.
With the opening of the MCX, the exact impact of the declines will become known. Additionally, gold and silver prices are also expected to fluctuate on the basis of the US consumer price index data for September, which is set to be released on October 24, and further clarity on the US Federal Reserve's policy stance.
