Gold Rate in India Crashes as Fed Jitters Trigger Selloff; Will Prices Fall on RBI MPC Day? 6 Feb Outlook

Gold Rate in India: Gold and silver prices in India fell sharply on Thursday after the precious metals failed to sustain the previous session's gains. The sharp sell off came after the US Federal Reserve's hawkish stance unsettled the market. Investor focus now shifts to Friday, February 6, when gold and silver price movements will be closely watched alongside the Reserve Bank of India's repo rate decision.

Gold rate in India saw a steep correction on Thursday, with 24 karat gold price plunging below Rs 1.55 lakh per 10 gram mark. Silver rate in India also saw a sharp decline during the trading session. Meanwhile, the RBI Governor Sanjay Malhotra lead six-member MPC will announce its decision on repo rate on Friday.

The decline in gold and silver prices on Thursday came after the United States Federal Reserve Governor Lisa Cook recently signalled that she will not support any rate cut considering the high inflation.

Gold Rate in India

The price of 24 karat gold in India fell to Rs 15,442 per gram at 6:30 pm on Thursday, February 5, as per GoodReturns data. The rate of 22 karat gold in India declined by Rs 460 per gram to Rs 14,155 per gram. The rate of 18 karat gold in India fell by Rs 376 per gram to Rs 11,582 per gram.

Silver Rate in India

The price of silver in India also saw a sharp decline. Silver rate in India fell by Rs 20 per gram to Rs 300 per gram. Likewise, 1 kilogram of silver fell by Rs 20,000 to Rs 3,00,000 per kg on Thursday.

Gold, Silver MCX

The precious metals prices declined on the multi commodity exchange (MCX). MCX Gold Futures (with April expiry) was down 1.26% at Rs 1,51,112 per 10 gram, and had dipped to an intraday low of Rs 148455.00 per 10 gram. MCX Silver Futures (with March expiry) had dipped to an intraday low of Rs 2,39,000 per kilogram.

Gold, Silver Price Outlook

Gold and silver prices are likely to remain volatile on Friday, February 6. Some experts believe that the price correction in the precious metals market is likely to continue for some more time. " After a strong rally, gold and silver have already seen a healthy correction. This phase of consolidation is not unusual for precious metals, especially after extended up-moves. In fact, such pullbacks often help reset positioning and improve the quality of the next trend," stated InCred Money.

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