Lottery started for those buying gold and silver! Silver becomes cheaper by more than ₹ 4400, gold prices also rise

On the very first trading day of the week i.e. 8th June, a big news has come out from the commodity market for common customers and investors. Today, the bullion market has given huge relief to the common people who have been suffering from record breaking inflation for a long time.

In fact, today there has been a huge fall in the prices of gold and silver. With the opening of the market on Monday, there was strong pressure on the yellow metal (gold), due to which the price of gold fell by more than Rs 1,200. On the other hand, a huge fall of more than Rs 4,400 has been recorded in silver. Market experts believe that the main reason behind this big decline is once again the deepening tension in West Asia and all-round weakness in the global markets.

Gold fell flat on MCX

Today, the first day of the week, gold had a very weak start in the domestic futures market (MCX). By 9:23 am, August futures (Gold Futures) on MCX were trading at Rs 1,54,380 per 10 grams, down by Rs 1,214. This is a decline of about 0.78 percent compared to the previous closing price.

If we look at the technical data of the market, the trend of short buildup in open interest is clearly visible. In simple market language, this simply means that traders are expecting further decline in gold prices, due to which new deals are being continuously added in favor of recession in the market.

The shine of silver also faded

Along with gold, heavy selling pressure is also being seen in silver today. By 9:26 am on MCX, the price of July futures (Silver Futures) fell by Rs 4,463 to Rs 2,44,074 per kg. If seen in percentage terms, it is a huge decline of about 1.80 percent.

At present, a situation of long unwinding is being created in silver deals. That is, investors who had earlier bought in the hope that prices would go up, are now seeing the market trend changing and quickly cutting their old deals to avoid huge losses.

How much relief did common buyers get in the bullion market?

Like the futures market, there is a soft atmosphere in the retail i.e. India bullion market too today. Even for common buyers who buy jewelery or coins directly from shops, prices have come down significantly today.

According to the latest data, today the price of gold in the spot market has fallen by Rs 1,150 to Rs 1,54,610 per 10 grams, which shows a weakness of 0.74 percent. Similarly, spot silver is also falling by Rs 3,950 and is being sold at Rs 2,45,160 per kg. Here too there has been a direct fall of 1.59 percent in silver.

Why did such a huge decline occur?

The real reason behind this big decline is the tension that has once again reached its peak in West Asia. Israel has announced an attack on some military bases of Iran. This aggressive stance has greatly increased the concern of investors around the world. The market fears that the fragile ceasefire in the region may break at any time.

Generally, it is seen that in times of stress, the demand for gold increases as a safe haven, but at present, amid the all-round weakness prevailing in the global markets, the attitude of investors has completely changed, due to which there is huge pressure on the prices of both gold and silver.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. Before taking any decision related to your money, definitely consult your financial advisors.