A fall in the prices of gold and silver is being seen in the futures market on Monday.Image Credit source: PTI
There is very good news for those investing in gold and silver on Monday. In the futures market of the country, a fall of more than Rs 200 was seen in the prices of gold. On the other hand, the price of silver fell by more than Rs 2,400. According to experts, investors are moving very cautiously before the Fed policy meet. The special thing is that there has been a decline in the dollar index. Even after that, there has been no increase in the prices of gold and silver. A rate cut of 0.25 percent is being expected from the Fed. Due to which the prices of gold and silver can reach new record levels. Let us also tell you at what level gold and silver are seen trading in the futures market of the country?
fall in gold prices
Although a slight decline is being seen in the prices of gold on the country’s futures market Multi Commodity Exchange. However, during the trading session, gold prices fell by Rs 229 and touched the day’s lower level at Rs 1,30,233. Whereas on Friday the price of gold was seen at Rs 1,30,462. However, today the price of gold opened at Rs 1,30,431. In the morning, gold is trading at Rs 1,30,417 per ten grams with a fall of Rs 45 at 9.50 am. However, gold is about Rs 3600 less than its life time high of Rs 1,34,024.
Silver prices crashed
On the other hand, silver prices are also seen falling on the Multi Commodity Exchange. If we look at the data, silver fell by Rs 2,434 to Rs 1,80,974 during the trading session. Whereas on Friday the price of silver closed at Rs 1,83,408. However, this morning the price of silver opened at Rs 1,81,900. At 89:50 am, the price of silver was down by Rs 1,588 and was trading at Rs 1,81,820. However, the life time high of silver is Rs 1,85,234. Whereas at present it is seen trading at about 2 percent less.
Why do gold and silver prices fluctuate?
Before the meeting of the US Federal Open Market Committee (FOMC), huge fluctuations are being seen in the prices of gold and silver. The central bank will make its policy announcement on December 10 amid mixed macro data. According to CME’s FedWatch tool, traders see an 88.4 percent chance of a 25 basis point cut in interest rates on December 10.
Meanwhile, expectations of interest rate cuts had an impact on the US dollar. The US dollar index was trading near its six-week low of 98.76, reached recently on December 4, making dollar-denominated gold cheaper in foreign currencies.
Manoj Kumar Jain of Prithvifinmart Commodity Research said in the Mint report that huge fluctuations are being seen in the prices of gold and silver before the monetary policy meetings of FOMC. US economic data released last week was mixed, with the dollar index falling to a one-month low and the strong possibility of the Fed cutting interest rates supported prices.