In 2024, international markets saw a precipitous decline in the values of gold and silver, with the former plummeting $2024/oz and the latter falling to $22.70/oz. As a result of the worldwide price correction, domestic prices have also fallen sharply.
Silver prices dropped by an even steeper 600 rupees per kilogram, while gold prices dropped by a massive 400 rupees every ten grams at the Delhi market. Following this steep decline, the local spot market price of silver was 75,800 rupees per kilogram and the price of gold was 63,050 rupees per 10 grams.
A stronger dollar index and increasing US bond yields have shattered prices, says HDFC Securities commodities analyst Saumil Gandhi. For a sense of consumer spending momentum, investors are eagerly awaiting the forthcoming US retail sales data for December 2023.
Furthermore, US Federal Reserve officials’ speeches will be closely watched for indications about the future of interest rates.
The tightening of monetary policy by the Federal Reserve is one reason why the dollar has risen to levels not seen in several years relative to other currencies.
Metals like gold and silver have seen their dollar value plummet as the dollar has risen significantly.
At Rs 61,860/g, gold futures contracts with a February 2024 expiration date were trading at a discount of Rs 160 on the MCX. At Rs 71,580/kg, silver contracts due in March 2024 were down Rs 510.
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The enormous price depreciation is a great opportunity for long-term investors to accumulate, according to analysts. With prices reaching multi-month lows, investors can benefit from dollar-cost averaging over a longer period of time through systematic buying. Use this tactic to your advantage by buying more metal when prices are low and less when prices are high.
Nevertheless, due to the persistent volatility, short-term traders should proceed with caution. Traders might benefit from intraday swings by studying important support and resistance levels. One further thing you can do to protect yourself from potential losses is to use stop losses.
The allure as an investment for the long run has not wavered, even though prices have fallen significantly. Throughout history, precious metals like gold and silver have served as reliable inflation hedges and diversifiers for investors. During economic and financial market storms, their safe-haven appeal becomes even more apparent.
Consequently, for the purpose of creating wealth and protecting assets over the long term, the present price drop presents a unique opportunity to establish core portfolio holdings in gold and silver at appealing levels.