There’s good news for those planning to buy gold and silver, especially with the wedding season around the corner. In a surprising development, the Jalgaon Saraf Bazaar has witnessed a significant drop in precious metal prices. Over the last few days, gold prices have dipped by ₹3,113 per tola, while silver prices have plunged by a whopping ₹12,360 per kilogram.
According to market data, just three days ago, the price of gold including GST was ₹94,863 per tola, and silver was priced at ₹1,05,060 per kilogram. As of today, gold has come down to ₹91,670 per tola, and silver is now trading at ₹92,700 per kilogram. This marks one of the steepest declines in recent weeks and has brought considerable relief to customers and investors alike.
Currently, the price of 10 grams of 24-carat gold in the Indian domestic market stands at ₹90,000, while on the international front, the metal is trading above $3,100 per ounce. Experts suggest that if the downward trend continues, domestic gold prices could fall further—potentially touching ₹55,000 per 10 grams in the coming months, reflecting a 40% decline.
Several key factors have contributed to the fall in gold and silver prices:
Increased Supply of Gold: Global gold production has seen a substantial boost. Australia, in particular, has ramped up its output, and the availability of recycled gold has also risen.
Higher Mining Profit Margins: In Q2 of 2024, the profit margin from gold mining reached approximately $950 per ounce, encouraging greater output.
Expansion in Global Reserves: Total global gold reserves have climbed by 9%, now standing at 2,16,265 tonnes, exerting downward pressure on prices.
While this correction comes as a welcome development for buyers, especially during the wedding season, market analysts advise caution. Given the volatility of international markets and potential currency fluctuations, gold and silver prices may continue to experience sudden shifts in the coming weeks.