The gold market is in turmoil, with gold rising ₹3,000 in a week, then falling again! What's the real reason?
Gold prices fluctuated last week amid volatility in the stock market. Initially, gold prices rose, but then fell as the week progressed. Let's take a closer look at gold's weekly trend.
Last week, the Bihar election exit polls and results brought some turbulence to the market. The gold market also experienced significant fluctuations.
At the beginning of the month, 24-carat gold was priced at ₹124,590 per 10 grams, but by the end of the week, it had fallen to ₹123,910.
Although there were some days during this period when gold prices rose sharply, they have declined significantly over the past week. Let's explore the price changes this week and the reasons behind them.
Gold sometimes rose, sometimes fell
Gold prices were at ₹1,24,590 per 10 grams on November 10th. They fell slightly the next day, the 11th, to close at ₹1,24,380 per 10 grams. However, the declining trend was broken the very next day.
On November 12th, gold prices saw a sharp jump, rising nearly ₹3,000 to reach ₹1,27,080. This upward trend continued on November 13th. However, as the market calmed down on November 14th, prices fell to ₹1,23,900, and remained at approximately the same level on the 15th.
On the Multi Commodity Exchange, gold prices fell to around ₹123,400 per 10 grams on November 14, a significant decline of 2.64% from the previous day. This decline is also being considered a sign of a technical correction.
Why did the prices fluctuate?
Gold prices are primarily driven by global conditions and investor sentiment. The US government shutdown ended on November 12th, bringing some relief to the market.
Gold is considered a safe haven in uncertain times, leading to higher prices. Additionally, expectations of interest rate cuts by the US Federal Reserve also boosted demand. However, as global markets began to stabilize, investors began selling gold to seek profits, leading to a decline in prices.
Silver situation
Like gold, silver prices have fluctuated. A week ago, silver was priced at ₹148,330 per kg. Within a few days, it rose to ₹156,160 per kg on November 15th. This clearly demonstrates that silver, like gold, is linked to global economic conditions.