Gold, Silver Prices On October 3: 24-Carat Gold Drops By Rs 660; Why Yellow Metal Is Losing Shine?

Gold and Silver Prices In India: Yellow metal is losing its shine globally due to robust economic data and the hawkish US Federal Reserve. In India, 22-carat gold declined by Rs 600 per 10 grams on Tuesday, while 24-carat gold dipped by Rs 660 per 10 grams. Silver prices were also burning and tumbled by Rs 2,000 per 1 kg. MCX gold has slipped below the Rs 56,600 mark. The domestic prices tracked spot gold which nosedived to a fresh seven-month low.

Gold is a safe-haven asset and investment here works like magic when it comes to hedging returns in economic uncertainties. However, elevated dollar index and treasury yields have soured sentiments in yellow metal in recent times.

On October 3rd, 22-carat gold was available at Rs 52,600 per 10 grams, declining by Rs 600 compared to the previous day's price of Rs 53,200 per 10 grams. Further, 24-carat gold fell by Rs 660 to Rs 57,380 per 10 grams as against the previous price level of Rs 58,040.

Also, 22-carat gold was down by Rs 60 and Rs 480 in 1 gram and 8 gram to Rs 5,260 and Rs 42,080 compared to the previous day. While 100 grams of 22-carat gold has nosedived by a huge Rs 6,000 to Rs 5,26,000 from the previous day.

Apart from 10 grams, the 24-carat gold has tumbled by Rs 66 and Rs 528 in 1 gram and 8 grams to Rs 5,738 and Rs 45,904 respectively. Lastly, the 100-gram 24-carat gold is available at Rs 6,600 to Rs 5,73,800 as against the previous day.

Meanwhile, silver is available at Rs 71,000 per 1 kg on Tuesday, diving by Rs 2,000 from the previous day's Rs 73,000 per 1 kg. Prices were down by Rs 2 to Rs 200 for buying 1 gram to 100 gram of silver.

Further, at MCX, gold futures expiring in December 2023, plummeted by a massive Rs 827 or 1.44% to trade at Rs 56,773 per 10 grams. The bullion had touched an intraday low of Rs 56,565 in the early trade.

While MCX silver futures also maturing in December were in a free fall by Rs 2,965 or 4.24% to trade at Rs 69,857 in 1 kg.

On the global front, in the day, spot gold prices declined near $1,817 an ounce, while US gold futures dropped near $1,830.95 an ounce level.

On Tuesday, Ravindra Rao, CMT, EPAT, VP - Head Commodity Research, Kotak Securities said, "COMEX Gold prices plunged to a fresh seven-month low, towards $1,830 per troy ounce as hawkish Fed and robust economic data from the US boosted the treasury yields and dollar index."

Rao pointed out that Fed Vice Chair for Supervision Michael Barr said the biggest question before central bankers was how long to leave rates elevated, while one of the FOMC hawks Michelle Bowman reiterated her call for multiple hikes.

Further, he said, "Treasury yields also received an impetus after the Senate passed a last-minute spending bill Saturday night averting a government shutdown, boosting the yields on the 10-year notes to a fresh 16-year high of 4.7%. Economic data from the US showed that ISM Manufacturing PMI rose to 49 in September, the slowest contraction in ten months, bolstering the Fed's hawkish stance."

Lastly, he concluded, "We expect the weakness in gold prices to continue amid higher yields and elevated dollar."