Gold and silver prices witnessed a major decline on Friday night as heavy selling hit the commodity market. Both precious metals fell to their lowest levels in the past 12 months. On the Multi Commodity Exchange (MCX), silver prices dropped by nearly ₹10,000 per kilogram, while gold became cheaper by more than ₹4,200 per 10 grams. The sudden fall came as a relief for buyers who had been waiting for prices to come down. However, the sharp movement also surprised investors in the market.


MCX Prices Drop Around 8 PM

Selling pressure increased sharply on MCX at around 8 PM on Friday. December futures silver fell nearly 5% to around ₹1.79 lakh per kilogram, registering a decline of approximately ₹10,000 in a single session. December futures gold also dropped around 3%, reaching a range of ₹1,38,250 to ₹1,38,400 per 10 grams. The steep fall brought both metals close to their lowest levels in a year and changed market sentiment within a short period.


International Markets Also Witness Heavy Selling

Gold and silver prices also declined sharply in international markets. Gold fell more than 3.3% to around $3,880 per ounce, its lowest level since October last year, according to the figures provided. Silver dropped nearly 5.12% to around $49 to $49.70 per ounce. A stronger US dollar and heavy selling by investors added pressure on both precious metals. The decline in global prices also affected the domestic commodity market.


Latest Gold and Silver Rates According to IBJA

According to the latest figures from the India Bullion and Jewellers Association (IBJA), 24-carat gold was priced at around ₹1.40 lakh per 10 grams. The rate of 22-carat gold stood at approximately ₹1.28 lakh per 10 grams, while 18-carat gold was around ₹1.05 lakh per 10 grams. Meanwhile, silver of 999 purity was recorded at ₹1,81,344 per kilogram. Buyers should also check local market rates, as jewellery prices can vary due to making charges and other applicable costs.


Why Did Gold and Silver Prices Fall?

Market experts have linked the sudden decline mainly to profit booking by investors. Better-than-expected US GDP figures also influenced market sentiment. Signs of strength in the American economy, along with persistent inflation, have increased concerns about interest rates remaining high. Rising crude oil prices, a stronger US dollar and higher Treasury yields have also put pressure on gold and silver. These factors have encouraged investors to reconsider their positions in precious metals.


Federal Reserve Signals Influence Investor Strategy

Statements from US Federal Reserve officials have raised expectations that interest rates may remain higher or become tighter. When interest rates stay elevated, demand for gold can weaken because the metal does not provide regular interest income. As a result, some investors have shifted money from gold and silver to other investment options. Future price movements will depend on global market conditions, the strength of the dollar and the Federal Reserve's interest rate decisions.