Hindustan Zinc Shares: Shares slipped on silver, stocks fell sharply, know the reason for the fall?

Hindustan Zinc Shares: The shine of silver also affected the shares of Hindustan Zinc, which fell by more than 3% today. Its ETF (Exchange Traded Fund) also weakened due to the fall in silver prices. Talking about Hindustan Zinc, the fall in silver prices had an impact on its stock because it is the largest producer of silver in the country, which produces refined silver of 99.9% purity. Currently it is down 2.33% at 580.15 on BSE. It had fallen 3.21% to 574.95 intraday.

Gold and silver, as well as their ETFs, crashed

Silver futures with March expiry on MCX fell by almost 2% to Rs 2,35,142 per kg. The contract with May expiry fell about 2%. Talking about gold, gold future with April expiry fell by almost 1% to Rs 1,53,522 per 10 grams. During this period, gold with June expiry also slipped by about 1%.

Silver ETFs saw the biggest decline, with Edelweiss Silver ETF falling nearly 2%, followed by ICICI Prudential Silver ETF, Bandhan Silver ETF and Motilal Oswal Silver ETF. HDFC Silver ETF, UTI Silver ETF, DSP Silver ETF, Nippon India Silver ETF (Silverbees), Zerodha Silver ETF, etc. also declined by more than 1%.

Silver ETFs witnessed a decline of over 3.5%, while Baroda BNP Paribas Gold ETF and Birla Sun Life Gold ETF declined around 2% each. Meanwhile, Bank Gold ETF, ICICI Prudential Gold ETF, Edelweiss Gold ETF, DSP Gold ETF, SBI Gold ETF, Grove Gold ETF, Mirae Asset Gold ETF and several other gold ETFs declined over 1%.

What do experts say?

The fall in gold and silver prices may be due to reduction in geopolitical tension, which has reduced the market’s interest in safe-haven investments in precious metals like gold and silver. US President Donald Trump said that he will indirectly participate in the talks between the US and Iran on Iran’s nuclear program in Geneva on Tuesday and also expressed confidence that Iran wants a deal.

Meanwhile, representatives of Ukraine and Russia will meet in Geneva for a new round of US-brokered peace talks. Gautam Shah, founder of Goldilocks Global Research, said that he sees a big opportunity in the global stock market, but no such opportunity exists for gold and silver.

He believes that after the big rally earlier this year, there could be consolidation followed by sharp fluctuations. Global Strategy Operations Lead Ross Maxwell says falling interest rates and a weak US dollar could increase silver prices.

Solar energy, electronics and electrification can also support industrial demand. However, Ross believes that existing stocks and recycling flows can prevent any sudden jump in prices.