In line with global market movements, gold and silver prices witnessed a sharp correction during Tuesday’s Muhurat trading session on the Multi Commodity Exchange (MCX). The decline reflected similar trends in the international bullion markets, where both precious metals faced steep price slides amid a global shift toward riskier assets.
Market participants reported that trading volumes were thin on Diwali day, as investors stayed cautious despite the traditional festive buying sentiment. Analysts said that after the festival season, particularly Diwali one of India’s key gold-buying periods demand for the yellow metal is likely to moderate in the short term.
According to reports, global investors are now embracing a “risk-on” sentiment, showing increased willingness to invest in equities and other high-return assets. This shift has reduced demand for safe-haven investments like gold and silver.
On New York’s Comex, gold prices slipped 4.6%, while silver suffered a sharper fall of nearly 7%, trading at $47.8 per ounce, compared to its record peak of $53.3 just last week. The decline underscores growing optimism in global financial markets, which has dampened the appeal of bullion.
Back home, MCX gold futures for December delivery dropped ₹271 to ₹1.3 lakh per 10 grams, extending losses in the domestic market. Silver futures followed suit, mirroring the steep global downturn.
Analysts suggest that unless global uncertainty resurfaces, the bullion market may continue to face short-term pressure, as investors chase higher returns elsewhere. However, long-term fundamentals for gold remain intact, supported by central bank buying and inflationary concerns worldwide.
