Tezzbuzz Desk- Tremendous fluctuations were seen in silver prices on the country’s futures market Multi Commodity Exchange (MCX) on Monday. As soon as the market opened in the morning, silver created a new history, but within a few hours a sharp decline was also recorded. After reaching the record level, silver became cheaper by about Rs 21 thousand, which created a stir among the investors.
Within a few minutes of the market opening at around 9 am, silver prices rose by more than Rs 14 thousand and crossed Rs 2.50 lakh for the first time. On MCX, at 9.02 am, silver reached its life time high of Rs 2,54,174 per kg. However, after this investors started booking profits, which had a direct impact on the prices.
According to MCX data, silver prices fell by about 8.28 percent from the record high. Within about three hours, the price of silver fell by Rs 21,054 and reached Rs 2,33,120 per kg around 12.20 pm. Such a sharp crash is rarely seen. At 1:55 pm, silver was seen trading at Rs 2,37,153 with a fall of Rs 2,634. Whereas on the last trading day of last week, silver had closed at Rs 2,39,787.
Three main reasons are being given for this sharp fall in silver. The first and foremost reason is profit booking. As soon as the record level was reached, investors started taking profits. The second reason is the news of peace talks between Russia and Ukraine once again, due to which geopolitical tension has reduced to some extent. The third reason is believed to be the decline in demand for safe haven investments, which directly impacted the bullion market.
Even in the international market, silver prices had crossed $80 an ounce for the first time on Monday. However, after this, prices fell below $ 75 an ounce due to profit booking and positive signals regarding a possible peace deal between US President Donald Trump and Ukrainian President Volodymyr Zelensky. Trump had given a statement that talks on ending the Ukraine war were at a critical juncture, which weakened the demand for safe investments.
However, despite the day’s heavy fall, silver has given tremendous returns to investors in the current year. Despite the record fall, silver has given returns of more than 180 percent so far this year. In the current month alone, investors have got a profit of about 40 percent.
Market experts believe that the main reason for the rise in silver prices is the increase in industrial demand and decrease in supply. Demand for silver continues to grow from electric vehicles, solar energy, and other industrial uses, which could support prices in the long term.
Comments are closed.