Monday was no less than a shock for the bullion market. In the times of global uncertainty, gold, which is considered by investors as the safest destination or ‘safe haven’, has seen its shine fading today. On the first trading day of the week, heavy selling pressure was seen in both precious metals, gold and silver. From MCX to the international spot market, the red mark dominated everywhere.
Gold and silver boom on MCX
Today the trading in the Indian Futures Market (MCX) started with slowness, which quickly turned into a big decline. Gold prices around Rs.1084.00 There was a decline of ₹, after which the price came to the level of ₹ 1,51,568 per 10 grams. But the real blow has fallen on silver. A huge fall of ₹ 5309 was seen in silver prices and it was seen trading at ₹ 2,39,699 per kg.
Why are prices falling?
The roots of this chaos in the market are connected across the seven seas to America and West Asia. In fact, after the failure of peace talks, instead of reducing the geopolitical tension, it has become more complicated. The tough stance taken by US President Donald Trump against Iran and the indications of a possible maritime blockade has taken the dollar index to new heights.
Whenever the dollar strengthens and US Treasury yields rise, the attractiveness of non-interest bearing assets like gold reduces. Investors find it more profitable to withdraw money from gold and invest it in dollars or fixed income assets. The same was seen in the international spot market, where gold fell by $42.81 to $4,720.09 an ounce and silver fell by 2.44% to trade at $74.4 an ounce.
The news is being updated…