Gold market in turmoil: Gold price jumped 3,000 in a week, then fell! What's the reason?

Gold Market In Turmoil: Last week, the exit polls and results of the Bihar elections brought some turbulence to the market. Furthermore, 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, gold prices have declined throughout the week. Let's explore the price changes this week and the reasons behind them.

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Gold sometimes rose, sometimes fell

Gold prices were at ₹124,590 per 10 grams on November 10th. They fell slightly the next day, i.e., the 11th, to close at ₹124,380 per 10 grams. However, the declining trend was broken the very next day. On November 12th, gold prices saw a sharp rise, rising by 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. Also Read: From Sukanya Samriddhi to NPS Vatsalya, PPF…which scheme will make children rich? On the Multi Commodity Exchange, gold also reached around ₹1,23,400 per 10 grams on November 14th, a significant decline of 2.64% from the previous day. This decline is also being considered a sign of a technical correction.

Why did prices fluctuate?

Gold prices primarily depend on global conditions and investor sentiment. The US government shutdown ended on November 12th, bringing some relief to the market. Furthermore, gold is considered a safe investment in uncertain times, which is why prices rose. Additionally, expectations of interest rate reductions by the US Federal Reserve also boosted demand for gold. But as global markets began to stabilize, investors began selling gold to make profits, causing prices to fall.

Silver's Situation

Like gold, silver prices have also 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 shows that, like gold, silver is also linked to global economic conditions.