Sharp decline in gold and silver prices
Gold and Silver: There was a sharp decline in the prices of gold and silver on Monday. Both gold and silver were seen trading under pressure on the Multi Commodity Exchange (MCX). The special thing is that the price of silver fell by more than ₹ 6,000 in a single day, while gold also became cheaper by about ₹ 2,000. In such a situation, this is considered to be good news for those who buy gold as investment.
Gold and silver prices fell on MCX
On Monday morning, the price of 10 grams of gold on MCX reached around ₹ 1.54 lakh, which is about ₹ 2,000 less than the previous trading session. There was a huge fall in the price of silver and its price reached close to ₹ 2.41 lakh per kg. Let us tell you that the effect of weakness in the international market and changed strategy of investors is visible on the domestic market also.
Pressure in international market also
In the global market too, gold prices declined for the second consecutive day. Spot gold is trading near $4,321 an ounce. Even before this, a big fall had been recorded in gold and the prices had reached the lowest level in several weeks. Weakness was also seen in American gold futures, due to which the confidence of investors is currently weakened.
Why are the prices of gold and silver falling?
1. Strong US employment data: Better employment data from America has changed the market sentiment. This has increased hopes that the US Federal Reserve can keep interest rates high for a long time. Higher interest rates reduce demand for non-interest bearing assets like gold.
2. Changed attitude of investors: Due to the fear of rising interest rates, investors are currently turning towards other asset classes instead of safe investment options. This has affected the prices of gold and silver.
3. Increased concern over oil prices: Due to increasing tension in the Middle East, crude oil prices remain high. There is a possibility of inflation increasing due to this, due to which many central banks of the world may adopt strict monetary policy.
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