June 8 – First trading day of the week – Important news came from the commodity market for common customers and investors. Today the bullion market gave some relief to those people who were facing the brunt of inflation for a long time. Especially a huge fall was recorded in the prices of gold and silver. As soon as the market opened, the pressure on gold was clearly visible; Gold prices fell by more than ₹1,200, while silver saw a major decline by more than ₹4,400. The reason for this big fall is the increasing tension in West Asia and weakness in the global market.
**Gold fell on MCX**
Gold had a very weak start in the domestic futures market (MCX) today. As of 9:23am, August gold futures on MCX were trading ₹1,214 lower at ₹1,54,380 per 10 grams. This is a decline of about 0.78 percent from the previous closing price. If we look at the technical data of the market, there is a clear trend of “shorting” in open interest. In market language, this means that traders expect a further decline in gold prices, due to which new positions are being added continuously betting on the market falling.
**The shine of silver faded**
Along with gold, heavy selling pressure was also seen in silver today. By 9:26 am on MCX, July silver futures prices fell ₹4,463 to ₹2,44,074 per kg. In percentage terms, this is a huge decline of about 1.80 percent. A situation of “long-term comfort” is forming in silver futures. In other words, investors who were earlier buying in the hope of price rise are now rapidly closing their positions to minimize losses after seeing the change in market mood.
**Relief in bullion market**
Like the futures market, the retail bullion market is also showing a declining trend. Prices have reduced today for common customers who buy jewelery directly from shops. According to the latest data, the spot price of gold has fallen by ₹1,150 to ₹1,54,610 per 10 grams, which is a decline of 0.74 percent. Similarly, silver spot price fell by ₹3,950 to trade at ₹2,45,160 per kg, a huge fall of 1.59 per cent.
**Tension in West Asia: Main reasons**
Tension in West Asia has once again increased significantly. Israel has announced attacks on certain military targets of Iran. This aggressive stance has increased the concern of investors. The market fears that the fragile ceasefire going on in the region may break at any time. Generally, demand for gold (considered a safe haven) increases during times of stress, but amid the current weakness in global markets, investor sentiment has changed significantly, putting immense pressure on both gold and silver prices.