Gold and Silver Prices Decline in India Amid Global Market Changes

Gold and silver prices have seen a notable decline in India on February 3, 2023, as various major cities reported lower rates compared to the previous day. This drop occurred even as global markets began to show signs of recovery for these precious metals. In Delhi, the price for 24-karat gold closed at ₹1,60,850 per 10 grams, a slight decrease from ₹1,60,860 the day before. Similarly, in Mumbai, Tamil Nadu's Chennai, and Telangana's Hyderabad, gold prices followed a downward trend, priced at ₹1,60,710, ₹1,62,650, and ₹1,60,720 per 10 grams, respectively.

Market analysts noted that the price adjustments are reflective of a broader subdued trend within the domestic market. The prices had soared to record highs above ₹1.8 lakh per 10 grams in late January, driven primarily by heightened demand amid escalating geopolitical tensions.

The situation for silver mirrored that of gold, with the prices also experiencing a dip. In Delhi, Hyderabad, Mumbai, and Chennai, silver was priced at ₹3,35,900, ₹3,65,900, ₹3,33,900, and ₹3,35,900 per kilogram, respectively, on the previous day.

Despite the local declines, global prices for gold and silver began to rebound on the same day. Reports from Reuters indicated that spot gold climbed 3.7% to $4,837.16 per ounce by 0120 GMT. This resurgence comes after a week where gold prices faced significant reduction, hitting their lowest in nearly a month.

The Multi Commodity Exchange of India reported that MCX gold futures surged on Tuesday, with April futures initially rising by 2.78%, eventually reaching upwards of ₹1,53,000 per 10 grams. Similarly, MCX silver futures climbed by 4%, moving towards ₹2,45,711 per kilogram.

Further recovery in silver was observed, as it jumped approximately 9.2% globally following a steep decline over the preceding week. Ole Hansen, the head of commodity strategy at Saxo Bank, expressed optimism regarding gold’s potential, indicating that prices could hit new record levels later this year. Hansen noted, "Gold has cleared its first retracement hurdle at $4,858, shifting focus toward $5,000."

Overall, the price fluctuations underscore the volatility of precious metals in response to both local market sentiment and international economic indicators. As the market continues to respond to these changes, investors remain watchful of future trends in gold and silver prices.