Patna, September 24: Gold and silver prices extended their decline for the fourth consecutive day on September 24, with both precious metals recording another fall in their latest quoted rates.
According to the India Bullion and Jewellers Association (IBJA), the price of 24-carat gold fell by Rs 853 per 10 grams to Rs 1.51 lakh.
Silver also declined, with the price of one kg falling by Rs 2,716 to Rs 2.30 lakh.
The latest fall extends a four-day downward trend in the bullion market. Over these four sessions, silver has become nearly Rs 7,000 cheaper per kg, while gold has declined by around Rs 2,500 per 10 grams.
Why Are Gold And Silver Prices Falling?
Market experts expect volatility in gold and silver prices to continue, with several factors influencing precious-metal prices.
The US Federal Reserve’s interest-rate decision has been cited as one factor behind the recent movement in gold prices. Changes in interest rates can influence investor demand for gold and other non-yielding assets.
However, geopolitical tensions and economic uncertainty could continue to provide support to gold.
During periods of heightened uncertainty, some investors turn to gold as a safe-haven asset.
Experts have therefore advised investors to remain cautious as weakness continues in the market. A sharp decline in prices could also create opportunities for some investors, depending on their investment objectives and risk tolerance.
Gold ETF: An Alternative To Physical Gold
Investors can also gain exposure to gold prices through Gold Exchange-Traded Funds (Gold ETFs).
Gold ETFs are traded on stock exchanges such as the BSE and NSE, similar to shares. However, investors do not receive physical gold when they purchase ETF units. Instead, the value of their investment is linked to the underlying gold price.
To buy Gold ETFs, an investor generally needs a demat and trading account and can purchase listed ETF units through a broker.
The amount corresponding to the purchase is debited from the bank account linked to the trading or demat setup. The ETF units are subsequently credited to the demat account according to the applicable settlement process.
Gold ETF units can also be sold through the trading account. Unlike physical jewellery, where buyers may have to pay making charges, Gold ETFs do not involve jewellery-making charges.
The amount required to invest depends on the price and trading unit of the selected ETF, rather than requiring the purchase of physical gold.
