There has been a lot of fluctuation in the prices of gold and silver. Both precious metals rose rapidly on Wednesday, but their prices suddenly fell on Thursday. Silver prices fell in an instant. On the MCX exchange, silver was trading down by more than two per cent, or more than ₹4,000. Meanwhile, gold also declined sharply, and the MCX gold rate fell by nearly ₹1,000.
fall in silver price
First, let’s explain this huge drop in silver prices. Silver futures with expiry on March 5 opened lower than their previous closing on the Multi Commodity Exchange. At 2:30 pm, when this news was being written, silver prices were down ₹4,223, or 2.23%, at ₹1,78,129 per kg.
Fall in silver in domestic market
Silver prices have fallen sharply not only in futures trading but also in the domestic market. According to the updated rates on IBJA.com, the website of the Indian Bullion Jewelers Association, the price of silver had closed at ₹ 178,190 per kg on Wednesday evening, but on Thursday it opened at ₹ 175,713 per kg, which is a significant fall. As a result, silver has fallen by ₹2,477 per kg in the domestic market.
What is the condition of gold?
If we look at the fall in the prices of gold along with silver, then the precious yellow metal also declined on Thursday. On MCX, the price of gold with expiry on February 5 fell by ₹ 835 and was trading at ₹ 129,627 per 10 grams. If we look at the price of gold in the domestic market, according to IBJA, 24 carat gold closed at ₹ 1,28,214 per 10 grams on Wednesday and opened at ₹ 1,27,755 on Thursday, which means gold suddenly fell by ₹ 459.
Note that the gold and silver rates updated on the Indian Bullion Jewelers Association website remain the same across the country. However, when buying jewellery, there is a 3% GST and making charge, which increases the price.
This is why gold and silver are falling
Talking about the reasons for the sudden fall in the prices of gold and silver, traders have booked huge profits in recent times, due to which the prices of gold have fallen in both the international market and the domestic market. Apart from this, positive updates regarding India-US trade deal have also reduced the inclination of investors towards safe haven investment. However, customers have heaved a sigh of relief as gold and silver became cheaper during the wedding season.