A huge fall was seen in the prices of gold and silver on Friday. Silver prices fell by ₹85,000 in 24 hours. Gold prices also fell significantly. This big fall happened when silver had reached ₹4.20 lakh and gold had reached near ₹2 lakh.
At 3:30 pm on Friday, the price of 1 kg silver for March futures on MCX fell by nearly ₹65,000 to ₹3,35,001, but by Thursday evening, silver had hit an all-time high of ₹4,20,048. As a result, silver prices have fallen by ₹85,000 in just 24 hours. Similarly, gold prices have also fallen significantly. Gold had hit a record high of ₹1,93,096 on Thursday, January 29, but fell ₹16,000 to ₹1,67,406 on Friday. This means that gold prices have fallen by ₹25,500 in 24 hours.
Why the sudden big fall in gold and silver prices?
On Thursday, silver not only crossed the ₹4 lakh per kg mark in the futures market, but also rose sharply. On Thursday, silver prices rose by ₹34,000 to an all-time high of ₹4,20,048. Similarly, on January 29, gold rose by ₹16,000 to reach a record high of ₹1,93,096 in the futures market. However, now both the precious metals have seen a huge decline.
Why this sudden big decline?
Experts say this is profit-booking, as gold and silver prices had been rising for several days, reaching record highs daily. Silver had crossed the ₹3 lakh to ₹4 lakh mark within a few weeks. A significant increase has also been seen in gold. Investors are doing profit-booking to protect their profits.
Some experts also say that as selling pressure increased in gold and silver, short sellers came into the market and shorted silver during trading, causing a huge fall in its price.
Prices of silver and other metals also fell in the international market, leading to fall in prices on MCX in India. Gold and silver prices fell after Donald Trump said he wanted to replace Federal Reserve Chairman Jerome Powell with his preferred candidate, which strengthened the dollar and eased some global tensions.
Big fall in Gold-Silver ETF also?
Due to the sharp fall in gold and silver prices, the prices of silver and gold ETFs have also fallen drastically. By the time the stock markets closed, silver and gold ETF prices had fallen by up to 20 percent. ICICI Silver ETF fell 20.14 percent, Nippon India Silver ETF fell 18.59 percent, Tata Silver ETF fell 13 percent. Talking about gold ETFs, Tata Gold ETF fell by 9.16 percent, Nippon India Gold ETF fell by 10.50 percent.