Patna : Gold and silver prices declined on October 12, with gold becoming cheaper by Rs 1,005 per 10 grams and silver falling by Rs 235 per kilogram, according to the India Bullion and Jewellers Association (IBJA).
The price of 10 grams of 24-carat gold fell to approximately Rs 1.48 lakh, while silver declined to around Rs 2.21 lakh per kilogram.
The latest fall comes after both precious metals recorded substantial price declines during September.
Gold Fell by Rs 8,000 in September
Gold prices declined by approximately Rs 8,000 per 10 grams during September, according to the figures cited in the report.
On August 31, gold was priced at around Rs 1.56 lakh per 10 grams. By September 30, the price had fallen to approximately Rs 1.48 lakh.
Silver also recorded a significant decline during the month. Its price fell from around Rs 2.37 lakh per kilogram on August 31 to approximately Rs 2.22 lakh on September 30, marking a reduction of about Rs 15,000.
Why Are Gold and Silver Prices Fluctuating?
Market experts expect volatility in gold and silver prices to continue, with several international factors influencing investor sentiment.
The factors highlighted in the source report include:
- US interest-rate policy: Changes in interest rates can influence the appeal of gold, which does not generate interest income. However, the direction of the impact depends on market expectations and other economic conditions.
- Geopolitical tensions: Conflicts and economic uncertainty can increase demand for gold as a perceived safe-haven asset.
- Market weakness: Further price declines may create buying opportunities for some investors, although prices can also fall further.
The report attributes the recent decline partly to US Federal Reserve policy. However, the precise contribution of interest-rate changes and geopolitical developments to the latest price movement would require further market data.
What Should Buyers Check Before Purchasing Gold?
Consumers planning to purchase gold jewellery should verify its purity and the applicable price before completing a transaction.
1. Check BIS Hallmarking
Buyers should look for the Bureau of Indian Standards (BIS) hallmark and verify the hallmark details. The hallmark helps establish the declared purity of the gold.
2. Compare the Price
Gold prices vary according to purity, including 24-carat, 22-carat and 18-carat gold. Buyers should check the prevailing rate from reliable sources, including the IBJA, and confirm the jewellery’s weight and applicable making charges.
The final retail price may differ from the IBJA benchmark because of taxes, making charges and the jeweller’s pricing.
Four Ways to Check Silver Purity
Consumers can use a few preliminary checks when assessing silver, but these methods cannot conclusively establish purity.
- Magnet test: Silver is not strongly attracted to an ordinary magnet, but some counterfeit items may also show no magnetic attraction.
- Ice test: Silver conducts heat efficiently, so ice may melt quickly on genuine silver. However, this is not a definitive purity test.
- Smell test: A strong metallic odour may indicate certain other metals or alloys, but smell alone cannot establish whether silver is genuine.
- Cloth test: Some silver items may leave a dark residue on a cloth due to tarnish. The absence or presence of such a mark does not conclusively prove purity.
For greater assurance, buyers should look for recognised hallmarking and obtain professional testing when necessary.
Should Buyers Purchase Gold After the Price Fall?
The latest decline may attract buyers who have been waiting for lower prices. However, a one-day fall does not establish that prices will continue to decline or that the market has reached its lowest point.
People buying jewellery for personal use should compare the final retail cost across reputable jewellers. Investors should consider their financial goals, risk tolerance and investment horizon rather than making decisions solely on the basis of short-term price movements.
Gold and silver prices can change with international market conditions, currency movements, interest-rate expectations and geopolitical developments.
