The domestic markets for gold and silver presented a mixed picture on Friday, January 12, with prices showing significant variation across major Indian cities. While the Multi Commodity Exchange (MCX) witnessed a dip, physical market rates in cities like Chennai remained at a premium.
City-Wise Gold and Silver Prices on January 12
On January 12, the price of 24-carat gold exhibited notable differences depending on the location. Chennai recorded the highest price at Rs 65,050 per 10 grams. Following closely were Mumbai and Delhi, where the precious metal was trading at Rs 64,900 and Rs 64,850 per 10 grams, respectively. The price for 22-carat gold also followed this geographical trend, with Chennai again at the top.
Similarly, silver rates varied across these metropolitan hubs. The price for one kilogram of silver was observed at Rs 78,300 in Chennai, Rs 78,100 in Mumbai, and Rs 78,000 in Delhi. This pattern underscores the impact of local demand, taxes, and supply chain factors on the final retail price of precious metals in different parts of the country.
MCX and International Market Movement
Contrasting with the firm physical market rates in major cities, futures trading on the Multi Commodity Exchange (MCX) showed a downward trend. Gold futures for February 5 delivery declined by Rs 64, settling at Rs 62,220 per 10 grams. Silver futures also experienced a drop, with the March 5 contract falling by Rs 317 to close at Rs 72,190 per kilogram.
This movement was influenced by the trends in the international markets. On the COMEX, a leading global commodities exchange, gold was trading lower at $2,033.70 per ounce. The global benchmark for silver also saw a decline, trading at $23.10 per ounce. These international cues, often driven by the value of the US dollar and global economic sentiment, play a crucial role in setting the direction for domestic futures prices in India.
Analysis and Market Outlook
The disparity between steady-to-high physical market prices and softer futures rates presents an interesting dynamic for investors and consumers. The premium in cities like Chennai can be attributed to strong regional demand and other logistical costs. Analysts suggest that investors are closely monitoring key economic indicators, including US inflation data and statements from the Federal Reserve, which directly influence global gold prices.
For buyers looking to purchase physical gold or silver, the city-wise rates are critical. The data from January 12 clearly indicates that shopping for gold in Chennai was costlier compared to Delhi or Mumbai. Meanwhile, the dip in MCX prices could signal a cautious short-term outlook among traders. Market participants are advised to keep a close watch on both international trends and local market premiums for making timely decisions.
