Gold falls in spot market, silver jumps on MCX; 24-carat at Rs 1,37,524 per 10 grams on IBJA

Gold and silver presented a mixed picture in the Indian bullion market today. Both precious metals rose in international markets, but their movement in India's futures and spot markets was quite different. On the Multi Commodity Exchange (MCX), gold traded slightly lower while silver jumped sharply. On the other hand, according to benchmark rates of the India Bullion and Jewellers Association (IBJA), both gold and silver fell heavily in the spot market. IBJA released these rates at 5 pm.

As per IBJA rates, 24-carat gold became cheaper by Rs 2,530 per 10 grams and fell to Rs 1,37,524. 22-carat gold fell by Rs 2,299 per 10 grams and is selling at Rs 1,25,990. 18-carat gold dropped by Rs 1,883 per 10 grams to Rs 1,03,158. The table lists 14-carat gold at Rs 80,463 per 10 grams. Silver also became cheaper in the spot market. On IBJA, silver fell by Rs 1,372 per kg to Rs 1,79,972.

The picture was the opposite in the futures market. On MCX, gold was seen trading at Rs 1,38,395 per 10 grams, a marginal fall of Rs 90. Silver saw strong buying. It rose 1.13 per cent, or Rs 2,028, to Rs 1,81,160 per kg. In the international market, gold on Comex is trading at $3,910 per ounce and silver at a high of $50 per ounce. Investors around the world are cautious ahead of the US presidential election on Tuesday.

Across cities, the price of 24-carat gold today is Rs 139370 per 10 grams in Mumbai, Pune, Nashik, Nagpur, Kolhapur, Jalgaon, Sangli and Chhatrapati Sambhajinagar.

On January 29 this year, gold and silver touched their all-time highs on MCX. Gold then crossed Rs 1,93,000 and silver Rs 4,20,000. From the very next day, both began falling sharply. Compared with current prices, gold is about 28 per cent below its all-time high, while silver has fallen by more than 56 per cent.

Jateen Trivedi, VP Research Analyst, Commodity and Currency, at LKP Securities, said: "Amid a high interest rate environment and uncertainty over the US election, gold is trading in a limited range around Rs 1,38,300, while Comex gold is hovering around $3,900." According to him, market players are wary as they gauge the policy of the US central bank (the Fed), so volatility may continue.

Trivedi also said that this week, labour market signals such as the ADP Non-Farm Employment Change, non-farm payrolls and unemployment data will be watched closely for clarity on Fed policy and the direction of interest rates. He expects gold prices in the country to move in a range of Rs 1,36,500 to Rs 1,41,000 in the coming days.

In the coming days, the next move in gold and silver will depend mainly on the US Federal Reserve's interest rate policy, the dollar index, bond yields and crude oil prices. If global uncertainty persists, precious metals could see a recovery again.