A very shocking news is coming out for those buying gold and silver in the Indian bullion market. If you are also planning to buy jewelery or want to invest in precious metals in this wedding season, then this can prove to be the right time for you. Today once again a huge fall in the prices of gold and silver has been seen in the Indian market. Globally, there is a weak trend in the prices of precious metals for the third consecutive week, the direct impact of which is visible on the domestic market as well.
The strengthening US dollar in the international market and the tough stance of the Federal Reserve has increased the pace of this decline very rapidly. Due to these big global reasons, investors have booked huge profits in the Indian bullion market and heavy selling is being seen.
Gold’s shine dulled due to geopolitical turmoil
The uncertainty over the implementation of the peace agreement between America and Iran has also had a deep and negative impact on the bullion market at this time. In fact, the high-level talks between the two countries in Switzerland have been suddenly postponed, causing huge disappointment among global investors. Due to this uncertain environment, the confidence of investors has wavered and they have preferred to invest in safe currencies like dollar instead of gold, due to which the demand for dollar has increased rapidly. All these major geopolitical events have completely dulled the shine of both the precious metals gold and silver.
Historic and huge fall in gold prices
According to the latest data released by All India Bullion Association, today the price of 24 carat gold in the Indian market has fallen by Rs 2,840 to the level of Rs 1,50,600 per 10 grams. Not only in the spot market, but also on the Multi Commodity Exchange (MCX), the future price of gold fell by Rs 3,392 to Rs 1,45,917 per 10 grams. Along with this, the price of spot gold in the international market has fallen by $ 60.70 to reach $ 4148.45 per ounce. Due to this unilateral fall in the price of gold, investors in both domestic and global markets have directly faced huge losses.
Silver prices also fell in the market
Following the path of gold, today the prices of silver have also registered a huge decline, which has caused another big shock to the common investors. According to All India Bullion Association, today the price of 1 kg silver has fallen by Rs 8,040 to a very low level of Rs 2,40,700 per kg. On the other hand, a huge decline of Rs 8,766 was also recorded prominently in the July futures contract of silver on MCX this morning. After this big fall, the future price of silver has come down to Rs 2,28,806 per kg, due to which there is a huge panic in the bullion market.
Disappointment among global investors increased due to postponement of Switzerland talks
The expectations that were created in the markets around the world regarding the peace agreement between America and Iran have completely diminished after the cancellation of the high level talks to be held in Switzerland. The Swiss Foreign Ministry has issued an official statement saying that this important conversation to discuss the next phase of the agreement has been postponed for the time being. Due to these unexpected developments, investors no longer have any confidence that the peace process between the two countries will be implemented easily. The continuously strengthening dollar and this political uncertainty have put all-round pressure on the prices of precious metals.
What do market experts and experts say?
Big market experts and analysts say that at present the entire bullion market is going through a period of huge pressure, because investors have given more priority to investing in dollars instead of gold. According to HDFC Securities, the Dollar Index has currently reached its new one-year high, which has had a direct negative impact on the prices of gold and silver. Due to gold falling for the third consecutive week, experts have advised the common people to invest very cautiously and after watching the market movements. Apart from this, the possibility of US key interest rates remaining high for a long time has also created a bearish environment in the market.
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