There is a big stir in the Indian bullion market today. The shine of gold and silver has faded on the futures market i.e. MCX and a sharp decline has been recorded in both the precious metals. Investors and buyers are watching this decline with surprise. The main reason for this turmoil in the market is being considered to be the upcoming policy meeting of the Federal Reserve of America and the decisions on interest rates there. There has been huge volatility in the market since this morning due to uncertainty about the Fed’s stance.
Why are the prices of gold and silver falling?
Market experts believe that due to rising inflation across the world and monetary tightening by the Federal Reserve, there is pressure on gold and silver prices. While weak June payrolls data slightly dampened expectations that there will be a more aggressive interest rate hike, geopolitical concerns, such as tensions in the Strait of Hormuz, continue to keep the market volatile. Due to these global conditions, gold and silver prices currently appear to be under pressure.
Gold situation: Big slip in the price of 10 grams
Today, a sharp decline of 0.52% i.e. Rs 767 has been recorded in the August gold contract on the domestic futures market MCX. After this huge fall, the price of 10 grams of gold has now come down to Rs 1,46,148. According to experts, Rs 1,46,100 and Rs 1,45,500 are important support levels for gold. If gold falls further below these levels, further weakness may be seen in prices.
Silver condition: prices dropped above Rs 2800
Today, a bigger decline is being seen in silver than in gold. There has been a huge fall of 1.14% i.e. Rs 2,859 in September silver futures. Now the new price of 1 kg silver on MCX has become Rs 2,33,416 per kg. According to experts, silver is getting strong support at Rs 2,33,300 and Rs 2,30,000, while upward resistance remains at Rs 2,38,800 and Rs 2,41,000.
Impact on markets of big cities
This decline in the futures market is sure to have a direct impact on the bullion markets of metropolitan cities like Delhi, Mumbai, Chennai and Kolkata. Buyers in the retail market are now keeping an eye on these reduced prices. Experts say that the real direction of the market will become clear only after the Fed’s minutes are released. According to experts at Master Capital Services, technically gold is still above strong support levels, and if there is a recovery from here, it may soon reach the Rs 1,50,000 zone.
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