Even when the world was on the brink of complete devastation due to this pandemic, there have been certain factors that people couldn’t afford to forego. The economy was and has always been one of those factors. Gold, silver prices also, are again one of those factors in the field of commodities that have numerous stakeholders in the market. The MCX or the Multiple Commodity Exchange Limited, which is under the Ministry of Finance, Government of India, is one of India’s largest commodity exchanges which plays a pivotal role in gold and other commodity-based tradings, and consequently affects the gold, silver prices in a humongous way.
Although the prices of important commodities and these gold, silver prices have been contingent, as of now the current price of 10gm of 22-carat gold stands at Rs. 47380, and that of one kg of silver remains at Rs. 67,900.
Recently, there has been a drop in the gold, silver prices on the MCX. While the gold futures have dropped by 0.35%, in the case of silver, the dip has been by 0.2%. This dip in the gold, silver prices has been happening for two consecutive sessions now. Even in the previous session, it had dropped by 0.75% for 10gm of gold, and by 0.5% for silver. The upcoming festival of Raksha Bandhan in India and the decline in retail purchases due to the up surging rate might be the driving agents behind the sudden dip in the gold, silver prices, although several factors come into play when considering the prices of these commodities.
However, the excise duty charges levied on these gold, silver prices further affects the rate.
For instance, within India, the price of 10 gm, 22-carat gold is Rs. 47140, Rs. 47380, Rs. 47,550, Rs.47600, and 45,470, in the cities New Delhi, Mumbai, Kolkata, Jaipur, and Chennai respectively. On the other hand, the silver prices in the country have been recorded the highest in Chennai, of Rs. 73000 per kg, despite the dip in MCX. In other cities, like Mumbai, New Delhi, Kolkata and Jaipur, the silver price remains more or less constant, at the rate of Rs. 67900 per kg.
The scenario of these gold, silver prices in the international market is a little different than the domestic one.
In the global markets, the spot gold rates have declined by 0.2%, thereby standing at $1809.21 per ounce. The silver rates have also fallen, and by a steady 0.4% and more, now standing at $25.37 per ounce. In contrast to these gold, silver prices, the rate of platinum at the international market has gone up by 0.6% and costs $1054.72 per ounce.
Inflation numbers, retail purchases, consumer demands and supply, changes in interest rates, the weight of the dollar with respect to other currencies, and so on are some of the most important factors which lead to these changes in gold, silver prices globally. It has been observed that the interest rates rise up when the price of gold falls. Rest assured, being non-productive commercial assets, the gold, silver prices heavily impact the economy.