gold and silver
Gold Silver Price Update: The last few days have been no less than a nightmare in the Indian bullion market. The scene being seen on the Multi Commodity Exchange (MCX) has increased the heartbeats of the investors. There has been a big fall in the prices of gold and silver simultaneously. The last few days have proved to be very disappointing especially for the buyers of silver, because its shine is continuously fading. Today the price of silver on MCX has fallen to Rs 2,35,221 per kg. If we look at the data, today silver opened with a fall of around Rs 15 thousand, however later the fall came down to around Rs 9000.
Will silver fall below Rs 2 lakh?
According to experts, this fall in silver prices seems to be breaking the record of the last 50 years. In the year 1980, silver prices fell 70 percent from the peak in 5 months. In the last few days, silver has fallen by more than 46 percent. If this decline continues till next week then the price of silver may also fall below Rs 2 lakh.
Even gold remains untouched, huge pressure on prices
Not only silver, but the movement of gold also appeared sluggish. Gold trading on MCX started with weakness. The fluctuations in the price of the yellow metal have left buyers in confusion. At present the price of 10 grams of gold remains around Rs 1,50,699. Although the fall in gold was a little less severe than that of silver, the way the prices have come down has indicated that the mood of the market is not good at the moment.
Why are the prices of gold and silver falling?
Common investors are wondering what happened suddenly that the prices scattered like a house of cards? The script of this big fall has actually been written in the international market. The main reason for this is the strength of the US dollar. The dollar index has reached its highest level in two weeks. A simple rule of economics is that when the dollar strengthens, it becomes more expensive for buyers using other currencies to buy gold, causing both its demand and price to fall. Apart from this, there are now signs of softening in the trade tension that had persisted between America and China. As soon as geopolitical tensions subsided, investors started withdrawing money from ‘safe haven’ like gold and silver and investing it in the stock market or elsewhere.
There was panic in foreign markets also
This trend of decline is not limited to India only, but there is chaos in the global market also. Globally, spot gold prices have fallen by about 2.5 percent, taking them to $ 4,838.81 an ounce. At the same time, the condition of spot silver was even worse. A huge fall of 14.9 percent was recorded in it and it is trading at $74.94.