The trend of decline in gold and silver prices continues. The prices of precious metals have fallen sharply after Trump’s announcement to postpone by five days his planned attack on Iran’s energy sites. On Tuesday, on the Multi Commodity Exchange (MCX), silver became cheaper by about 4.5 per cent—or more than ₹11,000—against its previous closing price. After this latest fall, the price of 1 kg silver is now down by more than ₹2.06 lakh from its all-time high. Like silver, gold prices also continue to fall. On the second trading day of the week, the precious yellow metal became even cheaper. After suffering a huge fall on Monday, its price has now fallen by more than ₹2,500 per 10 grams.
Heavy fall in silver prices as soon as the market opens
Let us first take a look at the fall in silver prices on Tuesday. On the previous trading day, silver prices had witnessed a sharp decline and fell below the ₹2 lakh per kg level; However, after touching this low, prices witnessed some recovery, and silver closed at ₹2,25,167 on MCX. In contrast, on Tuesday it opened at ₹2,13,562. Based on these data, the price of silver fell by ₹11,605 in one fell swoop.
When compared to its peak levels, the current price of silver is approximately half of that peak level. In fact, on January 29, silver futures prices had crossed the ₹4 lakh mark for the first time, and touched an all-time high of ₹4,20,048 per kg. However, this was followed by a sharp fall in prices (silver prices crash), and it is currently trading at a discount of ₹2,06,486 from that peak level.
When will gold prices finally improve?
The situation with respect to gold prices is exactly the same as that of silver. If we look at the gold rates on MCX, the futures prices of gold with expiry of April 2 became cheaper by ₹ 2,576 per 10 grams as compared to its previous closing price as soon as the market opened on Tuesday. After seeing a sharp fall on Monday and subsequent recovery, the price of 10 gram 24-carat gold had closed at ₹139,260; When trading resumed, the figure fell further to ₹136,684. If we look at this fall in comparison to the all-time highs of gold, the precious metal had touched a peak of ₹193,096 per 10 grams on January 29; After the fall seen on Tuesday, it is now available at a discount of ₹56,412 per 10 grams compared to that peak.
Gold and silver became cheaper globally: these are the reasons
The trend of falling prices of gold and silver continues in the international markets also. On COMEX, gold was trading down nearly 2 per cent at $4,317 an ounce (about 28 grams), while silver was seen trading lower at $66.89 an ounce. Talking about the factors behind this continuous decline in gold and silver rates, investors remain apprehensive about the risk of rising inflation due to the ongoing conflict in the Middle East. Conversely, the US Federal Reserve’s decision last week not to cut interest rates has put additional pressure on the precious metals. The uncertainty surrounding global economic growth has also accelerated this decline. Additionally, the US dollar strengthened on Tuesday, a development that put further pressure on gold and silver prices.