Silver and Gold Prices Crash: International gold and silver benchmarks crashed on Tuesday, halting a rally that showered investors with one of the precious metals’ best returns in decades. On COMEX, gold plunged by as much as $226.4 – or 6.1 per cent – to $4,093 per metric ounce while silver plummeted by $4.3 – or 8.3 per cent – to 47.1 an ounce.
That marked the biggest intraday fall for gold and silver since 2013 and 2021, respectively.
At 10:20 pm in India, gold was down 5.5 per cent at $4,119.9 while silver was down 7.3 per cent at $47.6 per ounce.
What caused gold and silver rates to fall?
Analysts say more bouts of profit-booking cannot be ruled out before the next leg up after the relentless run in precious metals that took their YTD gains to 60-70 per cent. Hopes of more rate cuts going forward will continue to support gold rates, they add.
The dollar index — which measures the greenback against six currencies other than the rupee — soared as much as 0.4 per cent in intraday trade, making precious metals dearer for potential investors dealing in other currencies.
On Monday, the rupee appreciated by nine paise to settle at a provisional 87.93 against the US dollar.
All eyes on Fed rate cut, US inflation data
Investors globally await a key rate decision by the Fed due next week for cues.
A US consumer inflation reading is due on Friday. The data may cement hopes for a rate cut.
Markets are widely anticipating a 25-basis-point reduction in the Fed funds range ik the upcoming review.
MCX gold and silver rates
During a special, one-hour session — called the Muhurat session — on Tuesday, MCX gold and silver futures (December 5) declined 0.2 per cent each to Rs 1,28,000 and Rs 1,50,000, respectively.
The domestic financial markets will resume trading on Thursday, after the Diwali holiday on Wednesday.