Gold and silver are under pressure again today February 2, as both domestic and global factors impact the precious metals market. The sharp drop in commodity prices has also impacted the share price of key jewellery stocks. Several stocks fell as much as 5% intra-day.
MCX Gold and Silver prices drop
MCX April gold futures opened 1% lower at Rs 1,46,000 per 10 grams. The metal has been trading lower throughout the session and is currently around Rs 1,46,500, down Rs 1,253 or 0.85%.
Intraday, gold hit a low of Rs 1,40,001. International spot gold is also down 3% at $4,703.27 per ounce. Silver has seen even bigger losses, with MCX March futures down Rs 31,878 or 12%, trading at Rs 2,33,774 per kilogram.
Jewellery stocks see sharp slide in Monday trade
In intraday trade, Motisons Jewellers saw the steepest fall at 5.38%, followed by Rajesh Exports and Kalyan Jewellers India, which dropped around 3% each.
Furthermore, in the list of Gems and Jewellery stock, P N Gadgil Jewellers, Sky Gold and Diamonds, and PC Jeweller were lower by 2.56%, 2.35%, and 2.33%, respectively.
Goldiam International slipped 2.20%, Senco Gold fell 2.09%, and Titan Company declined 1.81%. Manoj Vaibhav Gems N Jewellers was down 1.80%, D P Abhushan fell 1.18%, and Renaissance Global lost 0.67%.
On the positive side, Thangamayil Jewellery gained 2.67%.
Policy impact on market sentiment
Jewellery stocks had gained on February 1 after Finance Minister Nirmala Sitharaman kept customs duty rates on gold and silver imports unchanged. The government had earlier reduced gold import duty from 15% to 6% in July 2024.
While this initially gave some support, the current fall in prices is driven by global market movements and not domestic policy.
Conclusion
The MCX gold is still trading lower, and gold and silver remain volatile. The key factors such as the price movements, as international events, currency trends, and margin changes abroad will be closely watched by investors as this can impact both metals and related shares in India.