A big reversal was seen in the bullion market on Thursday, which has surprised everyone. There has been a sudden huge fall in the prices of gold and silver. While silver has fallen by Rs 9,000 per kg, gold has also become cheaper by Rs 3,500 per 10 grams. According to the latest data released by the All India Bullion Association, silver in the national capital Delhi has fallen by 3.66 per cent to Rs 2,37,000 per kg (including all taxes). Just a day before this, its closing price was Rs 2,46,000. At the same time, if we talk about gold of 99.9 percent purity, then a softening of 2.26 percent has been seen in it. After this latest fall, the new price of 10 grams of gold has now become Rs 1,51,500.
Why did prices suddenly fall?
According to Saumil Gandhi, Senior Commodities Analyst, HDFC Securities, the recent statement of US President Donald Trump has changed the direction of the market. Trump’s address did not reveal any concrete picture of resolving the ongoing tension in West Asia. On the contrary, he has given an open warning of possible military action on Tehran within the next 2 to 3 weeks. This aggressive stance has created a fear of further deepening of the conflict. The market fears that due to this tension the energy supply from the Strait of Hormuz may be disrupted for a long time.
International market situation and dollar game
This global tension has also had a direct impact on the international market. In foreign markets, spot silver has slipped to $ 69.57 an ounce, suffering a huge loss of 7.32 percent ($ 5.49). The sleeping situation is also no different. It has fallen 3.51 percent ($166.79) to $4,591.52 an ounce. Praveen Singh, Head of Commodities, Mirae Asset Sharekhan, explains that immediately after Trump’s warning, there was a big jump in the prices of crude oil once again. Meanwhile, the US dollar also strengthened by 0.5 percent and stood at the level of 99-100.