The Iran war has been going on for the last six days. Due to this, the tension in the Middle East has increased significantly, due to which the energy supply from Gulf countries to Europe and Asian countries is being disrupted. Iran has blocked the Strait of Hormuz, through which 20% of the world’s oil and energy supplies pass. After this incident, crude oil prices have increased to $85 per barrel and are expected to increase further. However, gold and silver, which are considered safe, are seeing a decline. Gold and silver prices have fallen on the Multi Commodity Market (MCX).
Fall in gold and silver prices
On Thursday, gold prices for April futures fell by ₹1,000 to ₹1.60,000. Similarly, silver prices also declined. The price of 1 kg silver for March futures fell by ₹7,500 to ₹2.58 lakh. However, a slight recovery is being seen now.
Some experts say that even before the war, a sharp increase in the prices of gold and silver was seen. These assets had also seen a rise during the war, but now investors are booking profits and prefer to hold cash. Meanwhile, the prices of gold and silver continue to fluctuate in the international market. The spot price of silver has fallen from $85 to $83. After the March 3 rally, it had fallen 15%. However, it is currently in recovery mode. Similarly, gold prices fell to $5,200 from $5,626.80.
How cheap are gold and silver from their record highs?
Before the war, there was a sharp rise in the prices of gold and silver. The record high price of gold on MCX is ₹1.93 lakh, while the record price of silver is ₹4.20 lakh. In such a situation, gold has now become cheaper by ₹ 33,000 and silver by ₹ 1.62 lakh from its record high.
ETF prices also declined
With the fall in gold and silver prices, the prices of gold and silver ETFs have also fallen. Gold ETFs fell 4% on Wednesday, while silver ETFs fell 8%. On Thursday, Gold ETFs fell by 2% and Silver ETFs fell by 4%.
