Gold slips to around Rs 1.39 lakh per 10 grams on MCX after Diwali; silver also falls

Gold and silver prices have come down again only days after Diwali. Both metals are bought heavily during the festival season, and people are seen buying even when gold prices rise sharply. After the festival-season rally, however, gold and silver are now both under pressure.

On Thursday, November 12, gold on the Multi-Commodity Exchange (MCX) fell to around Rs 1.39 lakh per 10 grams. In morning trade it dropped Rs 930 to Rs 1,38,730 per 10 grams.

Gold opened at Rs 1,39,282 on MCX that day. The previous close was Rs 1,39,716 per 10 grams, meaning trading began with a decline. The price of the December 4 gold futures contract is currently Rs 1,38,742 per 10 grams, about Rs 1,000 below the previous close.

Silver also fell sharply. At 10:22 am, silver futures on MCX were at Rs 1,82,336 per kg, a fall of Rs 2,115. Silver opened at Rs 1,82,599, also sharply lower. Its previous close was Rs 1,84,525, so it is down about Rs 2,200 at the current price.

The decline is not limited to the Indian market. Gold is under pressure in global markets too. US gold futures for December delivery fell 0.3 per cent to $3,987.50 an ounce. The pressure comes from the dollar reaching a 19-month high.

Global spot prices are trading 0.2 per cent lower at $3,979.09 an ounce. Gold is currently about 30 per cent below its record high. Silver has already fallen by more than 60 per cent. At one point, silver had risen above Rs 4,20,000 per kg.