India Gold Prices Plummet as US Interest Rate Hike Bites
Gold and silver prices in India have taken a hit, dropping significantly over the past two days. According to the India Bullion and Jewellers Association (IBJA), 10 grams of 24-carat gold fell by ₹580 to ₹1.47 lakh. The price of one kilogram of silver also dropped by ₹11,000, settling at ₹2.22 lakh. This marks a decline of ₹5,000 for gold and ₹11,000 for silver in just two days.
The prices have been affected due to the US central bank's decision to raise interest rates for the first time in three years, leading to a decline in gold prices. Some experts believe that the war between the US and Iran and economic uncertainty may support gold prices, making it a safe-haven investment again. However, investors are advised to remain cautious as the market still shows signs of weakness.
Experts suggest considering certified gold with the Bureau of Indian Standards (BIS) hallmark and cross-checking the price using various sources. When buying silver, they recommend checking for authenticity using methods such as the magnet test, ice test, smell test, and cloth test.