Gold prices on the MCX opened sharply lower in Wednesday’s evening session, with the December futures contract starting at ₹124,423 per 10 grams and sliding further to ₹120,575, their lowest level since October 10, marking a 6% drop from the previous close.
Meanwhile, spot gold prices also extended their decline on Wednesday, falling over 3% to below $4,007 per ounce, resulting in a cumulative two-day drop of around 8%. They are currently at their lowest level since October 13. On Tuesday, bullion had plunged over 5%, marking its steepest daily drop since August 2020.
The morning trading session for precious metals remained closed on account of Diwali Balipratipada, and trading resumed in the evening. Bullion traders were surprised to witness a significant crash, with experts attributing the sharp decline to profit booking after an unstoppable rally in prices, as gold had surged nearly 72% to its highest level.
Today’s price crash is also the biggest single-day fall the prices have witnessed in recent times, leading to a ₹12,000 drop per 10 grams from its recent peak of ₹132,294, touched last week.
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