New Delhi. The trend of decline in gold prices continues. At the same time, silver has also become cheaper by Rs 200. According to the All India Sarafa Association, the attitude of traders towards gold remained very weak at the global level. Jewelers also did not show any special interest in buying gold.Due to this, the price of 24 carat gold fell by Rs 800 to Rs 78,300 per 10 grams. In the last trading session, it closed at Rs 79,100 per 10 grams. On Thursday, silver also fell by Rs 2,000 to Rs 90,000 per kg. A day earlier, it closed at Rs 92,000 per kg.

Why did the price of gold and silver fall

Traders say that the US central bank Fed Reserve cut interest rates. This is a good sign for gold. But, bullion prices fell after Federal Reserve Chairman Jerome Powell adopted an aggressive stance. He said that the Fed now anticipates cutting interest rates twice by the end of 2025. In September, he had forecast four rate cuts.

What is the opinion of the experts

"Gold fell sharply after the Federal Open Market Committee (FOMC) meeting as the Fed said the rate cut for next year will be less than previously estimated," said Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities. Silver fell 2.47 per cent to $29.98 an ounce in the international markets.

Chintan Mehta, CEO of Abans Holdings, said, “Investors are waiting for the US weekly unemployment claims data to be released late on Thursday night. This will help in assessing the strength of the labor market. Personal consumption expenditure (PCE) price index data will be released on Friday. They will also be of great importance.”

Will the fall in gold prices continue?

The bullion market has definitely declined compared to previous levels, but investors will gradually increase their investments. This may strengthen the prices. Mehta of Abans Holdings said that we expect gold prices to rise further, but any delay in additional reduction in interest rates may make gold cheaper in the near term. This will also be a good opportunity to invest in gold.

Nish Bhatt, Founder and CEO of Millwood Kane International, said, "We think volatility will continue, the main signals will be from the announcement of the new administration and trade tariffs in the US." He said that traders expect gold prices to remain strong given the geopolitical situation in the markets. However, some weakness will be seen in the rupee.